ConocoPhillips Inc. (COP) raised its dividend by 7.7% to $3.36 annually, giving the stock a 3.84% yield, well above historical averages. The stock closed at $87.47 on Nov. 20, down from its recent peak of $91.37 after releasing Q3 results and announcing the dividend increase.

The new dividend hike is easily sustainable for Conoco, costing about $1.038 billion quarterly. With an average historical dividend yield of 3.10%, the stock could see a 24% increase to $108.39 per share. Analysts’ price targets also suggest an upside, making COP stock appear undervalued.

Investors can consider shorting out-of-the-money put options on COP to generate income and set a lower buy-in point. For example, the Dec. 19, 2025 $80 strike put contract offers a yield of 0.7625% per month, with a potential breakeven point of $79.39. This strategy provides an attractive upside potential of +36.5% if the stock price rises.

Read more at Barchart: ConocoPhillips’ 3.84% Dividend Yield Implies COP Stock Could be 24% Undervalued