logo
Is BP p.l.c. (BP) a Good Option for Passive Income Investment?

Is BP p.l.c. (BP) a Good Option for Passive Income Investment?

Yahoo6 days ago
BP p.l.c. (NYSE:BP) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now.
An oil rig surrounded by the expanse of sea, the pumping operations in progress.
BP p.l.c. (NYSE:BP) expects the total of its dividends and share buybacks over time to be around 30% to 40% of operating cash flow. The company is targeting an increase of at least 4% per year in its ordinary dividend and announced a dividend of $0.08 per share in April. As of the writing of this piece, BP boasts an impressive annual dividend yield of 6.13%.
BP p.l.c. (NYSE:BP) also announced $750 million of share repurchases at the end of the first quarter of 2025, and the $1.75 billion share buyback program it announced with the fourth quarter results was completed on April 25, 2025.
To help improve its profitability, BP p.l.c. (NYSE:BP) has revealed that it is working on a $4 billion – $5 billion cost reduction program. The company delivered $800 million of structural cost reductions and $300 million of absolute reductions last year. Moreover, it was already $500 million lower in terms of absolute cost base in Q1 2025, compared to the same period in 2024.
BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.
While we acknowledge the potential of BP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into.
Disclosure: None.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Starmer to raise Gaza ceasefire and UK steel tariffs in Trump meeting
Starmer to raise Gaza ceasefire and UK steel tariffs in Trump meeting

Yahoo

time11 minutes ago

  • Yahoo

Starmer to raise Gaza ceasefire and UK steel tariffs in Trump meeting

Sir Keir Starmer is expected to raise the prospect of reviving ceasefire talks between Israel and Hamas and the future of tariffs on British steel as he meets Donald Trump in Scotland. The Prime Minister will travel to Ayrshire, where the US president is staying at his Turnberry golf resort, for wide-ranging discussions on trade and the Middle East as international alarm grows over starvation in Gaza. The two leaders have built a rapport on the world stage despite their differing political backgrounds, with Mr Trump praising Sir Keir for doing a 'very good job' in office ahead of their talks on Monday. But humanitarian conditions in Gaza and uncertainty over US import taxes on key British goods in America threaten to complicate their bilateral meeting. Peace talks in the Middle East came to a standstill last week after Washington and Israel recalled negotiating teams from Qatar, with White House special envoy Steve Witkoff blaming Hamas for a 'lack of desire' to reach an agreement. Since then, Israel has promised military pauses in three populated areas of Gaza to allow designated UN convoys of aid to reach desperate Palestinians. But the UK, which is joining efforts to airdrop aid into the enclave and evacuate children in need of medical assistance, has said that access to supplies must be 'urgently' widened. In his talks with Mr Trump, Sir Keir will 'welcome the President's administration working with partners in Qatar and Egypt to bring about a ceasefire in Gaza', Number 10 said. 'He will discuss further with him what more can be done to secure the ceasefire urgently, bring an end to the unspeakable suffering and starvation in Gaza and free the hostages who have been held so cruelly for so long.' The leaders will also talk 'one-on-one about advancing implementation of the landmark Economic Prosperity Deal so that Brits and Americans can benefit from boosted trade links between their two countries', it said. The agreement signed at the G7 summit last month slashed trade barriers on goods from both countries. But tariffs for the steel industry, which is of key economic importance to the UK, were left to stand at 25% rather than falling to zero as originally agreed. Concerns had previously been raised that the sector could face a levy of up to 50% – the US's global rate – unless a further agreement was made by July 9, when Mr Trump said he would start implementing import taxes on America's trading partners. But that deadline has been and gone without any concrete update on the status of UK steel. Downing Street said that both sides are working 'at pace' to 'go further to deliver benefits to working people on both sides of the Atlantic' and to give UK industry 'the security it needs'. The two leaders are also expected to discuss the war in Ukraine, which Number 10 said would include 'applying pressure' on Vladimir Putin to end the invasion, before travelling on together for a private engagement in Aberdeen. It comes after Mr Trump announced he had agreed 'the biggest deal ever made' between the US and the European Union after meeting Ursula von der Leyen for high-stakes talks at Turnberry on Sunday. After a day playing golf, the US leader met the President of the EU Commission to hammer out the broad terms of an agreement that will subject the bloc to 15% tariffs on most of its goods entering America. This is lower than a 30% levy previously threatened by the US president. The agreement will include 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals, as well as EU purchases of US energy worth 750 billion dollars (£558 billion) over three years. Speaking to journalists on Sunday about his meeting with Sir Keir, Mr Trump said: 'We're meeting about a lot of things. We have our trade deal and it's been a great deal. 'It's good for us. It's good for them and good for us. I think the UK is very happy, they've been trying for 12 years to get it and they got it, and it's a great trade deal for both, works out very well. 'We'll be discussing that. I think we're going to be discussing a lot about Israel. 'They're very much involved in terms of wanting something to happen. 'He's doing a very good job, by the way.' Mr Trump's private trip to the UK comes ahead of a planned state visit in September.

If EPS Growth Is Important To You, Ricegrowers (ASX:SGLLV) Presents An Opportunity
If EPS Growth Is Important To You, Ricegrowers (ASX:SGLLV) Presents An Opportunity

Yahoo

time11 minutes ago

  • Yahoo

If EPS Growth Is Important To You, Ricegrowers (ASX:SGLLV) Presents An Opportunity

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Ricegrowers (ASX:SGLLV). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Ricegrowers with the means to add long-term value to shareholders. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Ricegrowers' Earnings Per Share Are Growing Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Over the last three years, Ricegrowers has grown EPS by 9.8% per year. That's a pretty good rate, if the company can sustain it. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. It seems Ricegrowers is pretty stable, since revenue and EBIT margins are pretty flat year on year. While this doesn't ring alarm bells, it may not meet the expectations of growth-minded investors. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. View our latest analysis for Ricegrowers While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Ricegrowers? Are Ricegrowers Insiders Aligned With All Shareholders? It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own Ricegrowers shares worth a considerable sum. To be specific, they have AU$29m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that's only about 3.9% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders. Should You Add Ricegrowers To Your Watchlist? As previously touched on, Ricegrowers is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. You still need to take note of risks, for example - Ricegrowers has 1 warning sign we think you should be aware of. Although Ricegrowers certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Australian companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

One in eight high earners with no inheritance ‘trapped by financial outgoings'
One in eight high earners with no inheritance ‘trapped by financial outgoings'

Yahoo

time11 minutes ago

  • Yahoo

One in eight high earners with no inheritance ‘trapped by financial outgoings'

One in eight (12%) people with a salary over £100,000, but with no parental wealth to fall back on, feel 'trapped' by their current financial commitments, a survey has found. More than two-fifths (44%) do not feel that they are able to comfortably meet their financial commitments each month, according to the research commissioned by wealth manager Killik & Co. Despite their high salaries, nearly a fifth (18%) of high earners in this group admit that their financial commitments are causing them stress and anxiety. Over a quarter (28%) said that the cost of supporting loved ones is reducing their financial savings while 26% said their own personal financial commitments are impacting their financial cushion. The most common monthly financial commitment, aside from household expenses and utility bills, was insurance (66%), including health, home and car cover. Nearly half (47%) of those surveyed have commuting costs, and 45% have private healthcare or other medical expenses. Over a third (36%) have credit card debt to pay. This group is also largely focused on the short term, the research indicated, with the majority (56%) thinking only a year ahead when planning finances and only 3% planning more than five years in advance. Will Stevens, head of wealth planning, Killik & Co said: 'A high tax burden, loss of free childcare, family dependants and mortgage costs all stack up and make it difficult for even those on the highest salaries to build up financial resilience. 'If they are not due an inheritance, it's clear even those on six figures and above are struggling to build up savings to ensure longer-term financial stability for their family. 'Provided money is managed carefully, this doesn't need to be the case. Upweighting pension contributions, managing salary increases and childcare support, and seeking financial advice to ensure your estate is well structured from a tax perspective, can all help high earners avoid the common traps which block them from accumulating wealth.' More than 2,000 people across the UK who are earning £100,000 or more and do not stand to inherit money from parents and whose parents cannot support them financially were surveyed by Censuswide for the research carried out in April and May. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store