ConocoPhillips Stock After The Dividend Cut

Right after ConocoPhillips announced a 66% dividend cut in February 2016, a user with the name “nylitigator” offered this very reasonable sounding comment in response to the suggestion that Conoco was a buy:

“I don’t understand what is attractive about COP after the dividend cut. COP is down 45% or so over the last year (and I understand that one year with any energy company is way too short of a time), but COP is down 27% over the last three years and down about 15% over the last five years (I believe this takes into account the dividends received).

So if you were long COP over the last 5 years you’re still down 15% and now have an approximately 3% dividend to look forward to collecting. I have to believe that there are better places for me to invest my money.”

As a factual matter, that comment was incorrect … Read the rest of this article!