Should Investors Buy ConocoPhillips (COP) if the Company No Longer Does?

Bottom line

While ConocoPhillips previously provided the ideal combination of a large dividend and a substantial buyback, the company has eliminated or at least temporarily reduced the program even as the stock hasn’t performed over the last 5 years. In fact, the stock has been relatively flat to down the last few years making the recent move curious. Typically investors would prefer to see a buyback scaled back as a stock trades at multi-year highs substantially above levels where the company had previously bought stock.

Clearly investors have several choices for high yields in the sector. Even sticking with ConocoPhillips is a possibility with the large dividend. Naturally BP and Total are slightly more attractive with higher yields though the slightly higher NPY of Chevron and Exxon make both stocks the highest yields on the list.

While dropping the buyback is discouraging, the stock still offers a compelling yield to hold onto investors for now.

The article Should Investors Buy ConocoPhillips if the Company No Longer Does? originally appeared on Fool.com and is written by Mark Holder.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.