This is what I’d do about the BP share price

first_img James J. McCombie owns shares of BP. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by James J. McCombie Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. This is what I’d do about the BP share price Our 6 ‘Best Buys Now’ Sharescenter_img Image source: Getty Images. The BP (LSE:BP) share price was 486p at the start of the year. Now it’s around 200p, almost 60% lower. The Covid-19 crisis caused oil demand to slump, and some oil-producing nations also increased their supply. This led to lower oil prices. Oil & gas producing giant BP saw its revenues slump. Losses mounted as assets were written down due to a bleak outlook for oil prices. BP had to slash its dividend and issue debt to raise cash.The anticipation and then reality of a dividend cut explains most of BP’s share price slump. In response to the pandemic and the broader outlook for oil, it’s planning big eco-focused changes. These changes make the company riskier, explaining the rest of the share price slide. I think the BP share price is attractive at 200p because the potential rewards outweigh the risks. However, I don’t think the kind of investor it traditionally attracted would agree with me.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…High yield, high riskIncome investors used to flock to oil majors. Oil prices, and therefore BP’s fortunes have always been cyclical. But, investors seemed to feel that the good years offset the bad enough to make the dividend reliable. Looking at the chart below, aside from the blip in the early 90s, the dividend yield on BP shares was below 5% for almost two decades as it steadily increased its dividend. That suggests the dividend was seen as reliable. Think of dividend yields like interest rates on loans: the more reliable borrower gets a lower interest rate.Source: macrotrends.netAs the Great Recession of 2007/09 unfolded, BP’s dividend yield increased, reflecting increased risk. Eventually, it cut its dividend, and the yield fell. But despite starting to increase the dividend payment again and then maintaining it all the way into 2020, the yield rose, and stayed high, only dipping below 5% briefly in late 2019. Then the Covid-19 crisis happened, and here we are.BP has cut its dividend to 5.25 cents per share per quarter for the foreseeable future. That’s about 16p per year, or around half of what was on offer last year, but the dividend yield is around 8%. That’s high for BP, but it reflects the riskier nature of the company and its dividends. According to its own forecasts, peak oil may have already come and gone, and a renewable future looks almost certain. It has recognised this and plans to be a very different company by 2030.Who should pay the price for BP shares?BP has committed to a 40% reduction in oil and gas production by 2030. Investment in low carbon energy should increase from $0.5bn to $5bn annually in a decade. More renewable energy capacity, greater bioenergy production, and 10% market share for hydrogen fuel are things BP wants for its future, which includes being net-zero for emissions by 2050.The payoffs are big if it can manage the transition. BP would swap volatile oil returns for a steady 8%-10% one on renewables projects, and markets would price its shares more favourably if it goes green. But there are significant risks involved in pivoting away from oil as you invest in what is still a young renewables industry. But I think investors who have a 10-year or so horizon, and can take the risk of missing dividend payments might find that 8% yield appealing. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address James J. McCombie | Friday, 23rd October, 2020 | More on: BP last_img read more

Faculty Council meeting held April 13

first_imgAt its twelfth meeting of the year, the Faculty Council heard proposals regarding the description of the Standing Committee on Public Service, study abroad in Freiburg, and the description of the Standing Committee on the Library.The council next meets on April 27.  The next regular meeting of the faculty will be on May 3. The preliminary deadline for the regular meeting of the faculty on May 3 is April 19.last_img