The Dividend Daily

Oil producer BP plc (BP) said Tuesday that its third quarter profit fell 34% from last year on lower oil prices, but results still easily beat analyst expectations.

The London-based company posted third quarter net income of $5.34 billion, or $1.71 per share, down from $8.05 billion, or $2.58 per share, in the year-ago period. Last year’s results were bolstered by much higher oil prices, which exploded last summer amid a glut of speculative energy trading.

Excluding one-time items, adjusted profit was $4.67 billion. On average, Wall Street analysts expected a much lower profit of only $3.16 billion. Revenue plunged 35% from last year, as a result of sharply lower oil prices, to $67.9 billion.

BP shares rose $2.51, or +4.5%, in morning trading Tuesday.

The Bottom Line
We began recommending shares of BP back on Sept.2, when the stock was trading at $50.47. The company has a dividend yield of 6.06%, based on last night’s closing stock price of $55.48.

BP plc (BP) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.