I just bought some shares of COP. Several reasons it looks like a winner . 1) the spinoff. The gas station business appeared to a drag on margins . 2) cashflow. Cashflow , what can I say but WOW. COP buys back alot of shares annually and increases the dividend . 3) mostly an oil play . We all have seen how well oil does in a lousy economy. Just wait until we have some economic pickup.4) the location of reserves are primarily in the US (and Alaska), Canada, and Europe. Very small percentage is in the Mideast while the other small remainder is in Asia. While the dividend appears very safe at current levels of production , price appreciation seems a given , since COP will be increasing production and seek 120% replacement of reserves thru exploration over the next several years.
I'm surprised that COP hasn't lowered the dividend because of PSX spin-off. I certainly don't want the dividend to fall... it's the highest yield compared to the other oil giants. Is there any chance the dividend will fall? In the meantime I'm reinvesting it. Not sure if I'd buy more PSX, so I only own the spin-off.
COP will not be cutting the dividend, but will be increasing it soon. Any number of analysts have said as much and it's their opinion there is plenty of room for an increase. ANYTHING is possible, but anything but an increase out of COP is very IMPROBABLE. Increasing the dividend is a stated goal of the company.