ConocoPhillips (COP) will raise its quarterly dividend by 7.5 percent to $0.285 per share in the first quarter of 2018. This follows a 6 percent dividend hike last year by the oil company.

The dividend is payable on March 1, 2018 to stockholders of record at the close of business on Feb. 12, 2018. The new dividend yield for COP is 2.0%.

"2017 was a very successful year by all measures," said Ryan Lance, chairman and chief executive officer. "We accelerated our disciplined, returns-focused value proposition and delivered on our strategic priorities. We transformed our portfolio, strengthened our balance sheet, returned 61 percent of cash flow from operations to shareholders through our dividend and buyback program, and achieved our operational milestones, including 200 percent organic reserve replacement."

Lance continued, "We entered 2018 with strong operational and financial momentum. While the outlook for commodity prices has improved, our operating plan remains unchanged and we have already taken clear actions to demonstrate our commitment to maintain discipline and follow our priorities. Since the year began, we've paid down $2.25 billion of additional debt, raised our quarterly dividend rate by 7.5 percent, increased our planned 2018 share buybacks to $2 billion, and announced an attractive bolt-on transaction in a high-quality, legacy asset with significant exploration upside. We are focused on safely executing our 2018 operational and financial plan, which is designed to generate top-tier growth in free cash flow and production per debt-adjusted share, while delivering superior returns and a compelling payout to shareholders."

ConocoPhillips is an energy exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas and liquefied natural gas (LNG). The company operates worldwide with business in Alaska, Canada, Europa, North Africa, Asia Pacific and the Middle East.