Member Info for zac0_4

Personally, now BP have cut the dividend by 50% I think it's safe at this level for many years to come.

Paddyboy1 "I'm not sure of any stocks at the moment offering a better divi yield than BP" . . . how about the following? All yields based on today's share purchase price: Standard Life 9.57%, Legal & General 9.46%, New City High Yield Funds 9.27%, Henderson Far East Income 7.58%, Henderson High Income 7.73% & Merchants Trust 7.69%.

The last 3 are investment trusts. Whilst they trail the current BP dividend yield they have historically increased their dividends year upon year. Merchants Trust have increased the dividend every year for 38 consecutive years. No idea how they'll perform in the future. However, if you're an income seeker investment trusts (the last 3 on the list) offer an attractive history - year on year dividend increases, investment spread across a wide range of holdings, the ability to 'squirrel away' income to be used to support dividend payments in difficult times.

Not intended as advice or a recommendation simply ideas that maybe of interest if chasing dividends is your thing. GLA.

I'd be amazed if there was a further cut to the dividend. They had the chance to reduce it and did so by 50% 3 months ago. It would be viewed as nothing short of incompetence by major institutional shareholders if they cut it further now.

tacet - " . . . and zac's - probably at 300p" I wish! Overall average £4.53 with a breakeven figure of £3.60 taking dividends to date into account.

No sillier than your, so called, facts!

I'm confused. I thought hedge fund shorting was behind the share price decline. How can technicals taken from a graph indicate where this is going if it's all down to hedge fund shorting???? I'm still firmly in the camp of sentiment and a lack of clarity for future earnings.

I just don't see a further dividend cut. BP realise how important their dividend is to major institutional investors. When they made the 50% cut they will have ensured it was more than sufficient to meet their cost cutting requirements for the foreseeable future.

stu100 - I was just about to post the same data. I'm amazed how people who (say they) are invested here don't have a handle on some of the basic fundamentals ie annual dividend yield at current level. I would also say that I'd be amazed if BP altered the dividend any time soon. They've just cut it by 50% so to make another change 3 months later would make no sense at all!

If it's a buy at £1.90, why isn't it a buy at £2.00? If £1.50 is a definite possibility why are you even contemplating buying at £1.90? I apologise, as I'm not having a go at you but do people actually read what they write on this board?!

"FTSE often tracks the US stock market" . . . really? The S&P is up 66% over 5 years, the FTSE100 is down 10%. Over 1 year S&P +15%, FTSE -20%. Over what timescale do you have in mind?

BP and Shell are not in a cartel. That's illegal!

I simply don't buy an awful lot that's posted here. The decline is down to Looney's green strategy, the hedge funds will drive the price down until they're ready to remove their short positions, the chart candles (or whatever they are) indicate this or that . . . I'm firmly in the camp of poor sentiment created by uncertainty around future demand and pricing. This share price performance is no different to RDSB ie 6months -29% and 12months -55%.

I think you need to decide if you're looking to make money from trading or investing. There's a difference in my view. Appleby suggests looking at sectors. That's worked for me using investment funds (OEICs). Legal & General offer a wide range. L&G Global Technology Index, L&G Global Healthcare and Pharma, L&G Global Infrastructure and also a number of index, or tracker, fund ie L&G US Index, L&G International Index. Good diversification and if you invest every month without fail you should see a decent return over the long term.

tacet - I wasn't being silly. It was you that said " I am afraid that BP is heading the Rolls Royce way, let say to 100p, then an announcement of a RI etc" All I asked was for you to clarify on what basis you've made this statement.

The RR rights issue will raise around £2bn. BP have effectively raised more than that annually on the back of their dividend cut.

And exactly why is BP heading for £1 and a rights issue?

selecta6 - be very selective with regards to the advice given on any bulletin board. There'll be plenty of people telling you that x, y or z is a "screaming buy at these levels". It's up to you to make your own mind up.

An earlier post alluded to the importance of diversification. I couldn't agree more. But for true diversification you need to look outside of the UK stock market. The UK equity index represents about 4%, yes only 4%, of the global stock market index. It is also vastly underweight in information technology. A sector that will continue to grow in my opinion.

Look to have a proportion of your investments in global funds. Either well managed or trackers. That would be my first priority. Invest every month without fail, every year without fail over a long period of time and your investment should deliver significant growth.

Luckily I'm well diversified. My combined holding in BP and RDSB represents, at cost, about 3% of my total portfolio value. So, the fact that I'm around 49% down on my capital, about 27% down taking into account dividends received to date, is not the end of the world. My global fund investments have been a life-saver for me this year. Good Luck!

Before I got too heavily involved in

Not a particularly positive view for 2021!

https://www.msn.com/en-gb/money/other/exclusive-opec-fears-second-virus-wave-could-lead-to-oil-surplus-in-2021/ar-BB1a6dyW?ocid=msedgdhp

Isn't this simply a case of poor general market sentiment coupled with a significant decrease in demand for the commodity produced? At this stage, in my opinion, it's nothing to do with Looney's appointment. Compare BP and RDSB 6m and 12m total return. BP -28% -55%, RDSB -28% -57%.

Marfthew "Stocks like Shell and BP will have their day in the sun again and tech stocks will have another dot com bust cycle to come" . . .

I agree with the first half of your statement but not the second half. The current growth in tech stocks is nothing like the 2000 tech boom / bust. Back then companies were valued on expectations. Some had no sales and profits, just potential, and massive valuations. Look at the sales and profits, and cash positions, of todays tech giants - Apple, Microsoft, Facebook, Google, Nvidia, Adobe etc. There's no comparison. And whether we like it or not these companies, and others like them, will continue to shape the future of many business sectors.

Dividend day today! I used to look forward to these paydays. Little did I realise in return I'd be holding a share that now sits at pretty much a 25 year, yes 25 year, low!!