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