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By Malcolm Stacey | Friday 9 February 2018
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello, Share Seekers. I have a bigger holding than is safe with BP (BP.), but I don't think I’m going to sell any for some time. Which is a bit of a silly statement to make as, just like any other company, the story could change at any time. But BP has ridden out the storm of compensation. And though the fight isn’t over yet, I think share shifters like us need not worry too much. This is a huge company which can absorb most shocks.
The problem with BP is the dividend. For nearly four years now, the bounty has not increased. But the word on the streets is that this might soon change. Recent news at BP was that the annual gains have soared, thanks mainly to the rising price of Brent crude. Underlying profit is up by 139%. The share’s steady climb has turned into a fall since all that Hoo-hah on Wall Street. But it will recover its upward trek, I fancy, once the nine-day wonder is over.
The share price for BP climbed to around 520p before the Wall Street dive. Now it’s back towards 480p. It’s rather galling that I bought many BP shares above 500p four or five years ago. Then it was embroiled in bigger claims than now and did not seem that attractive.
But now that the stock should be more desirable, given the fundamentals, the share price is no higher than when I bought. However, I don’t think that will continue given that the company has been cutting costs like all the big oilers.
Though I can’t guarantee it, of course, I would not fall backwards in a dead faint if BP was to grant a juicy cashback to shareholders sometime in the future. Meanwhile, we can probably benefit from a rising oil price, more efficiencies and a possible bigger ordinary dividend.
And now the Punter’s Return beckons.
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