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I did say it’s possible not saying it’s for definite lol not everyone bought at 5 quid. I know a guy who bought during gom and still has the share as passive income as he is a barrister he doesn’t have time to trade.
mojo, that's cherry picking and I don't think a few years amounts to 11 years.
It’s quite possible he’s a holder when gom happened didnt the sp hit 320s if so he’s not in too bad a shape and the divis over those 10 years would put him in the green. That’s the only way I can see any logic in the capital gains statement other wise if he’s a upper 4-5 quid holder that statement is ridiculous.
" Investing in BP is a banker. It’s all about the divi not a lot of hope about capital gains . . ."
Then why not simply invest in a global equity index fund? You'll probably average 7 - 8% growth pa which is 2 - 3% pa better than you believe you'll get here . . .
or,
choose a dividend paying holding (if dividends are your thing) that, again, pays a much higher yield than BP. You can get 7.6% yield from Henderson Far East Income currently which, in monetary terms would be a 50% increase on the return on your capital from the dividends you receive here.
'I’ve held BP for several years and will continue do so. Its a great investment but not for capital gains.'
Just to add to what Bigbadbaz has stated with regards to capital loss, it hasn't been particularly good for your dividend either! In case you haven't noticed it's been cut by 50%!!
As a long term holder who has seen your capital reduce by (say) 40% and your dividend cut in half, I cannot for the life of me understand how you can say this is a 'great' investment.
I've also held BP for many years and for me this has been appalling!!
'I’ve held BP for several years and will continue do so. Its a great investment but not for capital gains.''You have held for several years and you think it is a great investment?.Are you sure about this?Your divis amount to a lot less than your loss of capital.
I totally agree with your sentiments Rhino. Investing in BP is a banker. It’s all about the divi not a lot of hope about capital gains. Those investors who want to double their money should look elsewhere. I’ve held BP for several years and will continue do so. Its a great investment but not for capital gains.
RDSB cut dividend by 2/3, BP 1/2.
BP paying higher % dividend for a year and still more than RDSB and you think they are not performing?
And all this while investing massively in green energy and paying for GOM…
I think they have done rather well given the current situation.
Cong
You're correct, but to my mind its about the investors perception of a companies share price/dividend perhaps I should of expanded more on that than just putting the figures up.
IMO confidence is low in BP as it plans to radically cut oil production over the next 10yr's with analysts predicting oil prices to rise for the foreseeable future so there is a disconnect between what looney is promising in the way of shareholder returns & where the profits to fund them & sustain them are coming from other than oil.
RDS has a very much slower approach to transitioning to a greener company while (seemingly) raising their (headline grabbing %) dividend substantially more than BP, its a good PR job but also due to its slower approach it appears more sustainable moving forward too, building much more confidence in their approach to markets & PI.
Like I say I could be totally wrong in my views & would love to see BP back over £4 with a healthier dividend to boot, but I just can't see how Looney plans to boost confidence in his plan & BP's EPS other than through buybacks which are going to be funded by the products he is telling everyone BP will be selling much less of moving forward.
Well said Showmethewonga
BP has always been pretty good by sharing profits with it's shareholders with dividends until now. We have Looney driving shareholder value into the ground. If he was serious about gaining greener assets, he would raise the dividend thereby raising the share price to get back to pre-pandemic figures, and start acquiring renewable energy assets (whilst prices are still good due to the pandemic) using cash and shares with the benefit of high valued shares, and not wasting our cash on buybacks which is basically providing liquidity to sellers.
BP are at the back of the class now, selling profitable businesses and putting cash into buybacks is short term and can only benefit the BOD if there is some sort of EPS bonus package.
There is no chance of breaking out of its pandemic high of 342p (the ADR high in £).
I've started this week reducing my BP holding (initially with shares bought recently at 289) and investing into other companies more serious about shareholder value. I will be keeping an eye on the RDS/BP yields as well as chances to sell if SP is 320 to 340.
Show, correct me if i am wrong, but you state RDS divi increase against BP as if it means BP are some how failing? RDS divi is now just below BP, BP have given over a year of higher Divi than Shell. It is if future increases occur that those kind of comparisons can be made.
IMO if BP keep acquiring wind / solar companies and managed to get the profits rolling in the next 6 months it may be about that point that the market will understand or see if it has potential, as i believe that the SP simply comes down to unknowns and caution atm.
RDS ups divi by 38% BP 4%
RDS although claiming to be transitioning too but yet seems to be taking a more cautious approach.
BP on the other hand almost feels like it has a stable full of stallions that are highly profitable but has decided to sell them all off as quick as they can bolt out the doors & not to bother replacing any of them in favour of the three legged mare at the back with the green eyes.
It will take years if not decades to profit from such an aggressive transition. The promise of raising the divi & buy backs is all pinned to the price of the black stuff from a company that has said it will drastically reduce the amount it pumps over the next decade.
Adding a penny to the dividend over the next 4yr's after a 50% cut is just laughable & an insult to long time holders, but further to that & without showing any real profits from the massive investments made in green tec over the same period IMO will mean very little added share value from any buy backs for them.
I truly hope I'm wrong but I don't see much added value & have no confidence in Looney's strategy at the mo. We can all mostly agree & accept a need to transition to greener projects but at such an aggressive pace, seems a reckless knee jerk reaction.