BP (FTSE100 less risk) v 88E (AIM with great risk)17 Jul 2023 14:40
High oil and gas prices following Russia’s invasion of Ukraine boosted investor interest in energy giants as profits soared. However, with prices beginning to fall back, BP (LSE:BP.) shares have flatlined in 2023.
I don’t own shares in the FTSE 100 company. But, if I’d invested £1,000 back in mid-2022, how much would I have today? And what’s the outlook for the BP share price from here?
Let’s explore.
Twelve-month performance
Over the past year, the BP share price climbed 25%. Those gains came from strong performance in the latter half of 2022. Two breakout moves this year weren’t sustained. The stock is down almost 4% from where it was at the start of January.
Taking a longer-term view, the shares are down 20% on a five-year basis.
In July 2022, I could have bought 268 shares at 373.30p each for a total of £1,000.44. Today, the share price stands at 465.90p. Accordingly, my shareholding would be worth £1,248.61 — that’s a healthy return.
What’s more, BP is a dividend stock. Adding passive income to the equation, my return would increase by £56.19, leaving me with £1,304.80.
For investors entering positions today, the company offers a 4.46% dividend yield.
Reasons to buy…
Related video: Which Bank Is The Best Investment? Comparing P/E Ratios - $JPM $C $WFC (Benzinga)
Good morning ladies and gentlemen, boys and girls of Zinger
Benzinga
Which Bank Is The Best Investment? Comparing P/E Ratios - $JPM $C $WFC
0
View on Watch
BP’s latest results were encouraging. Aided by commodity market volatility, the company’s oil trading division performed particularly well. Underlying profits for Q1 reached $5bn, comfortably eclipsing the $4.3bn expected by analysts. This prompted the announcement of a new $1.75bn share buyback programme.
DYOR and GLA