I’m thinking of recommending that my son purchase BP as his first dividend stock for Entertainment money!
Why, you might be wondering… while having a disgusted look on your face…
Well, it was hit pretty hard with lawsuits and other persecutions by the US. So its stock price is still way off of it’s highs. But the main reason is that I expect the stock to stay pretty stable at these current prices, and for them to keep their 5% dividend in place. In fact, I’m hoping that they increase their dividend as the price of the stock goes up over time.
BP’s current PE ratio is 5.0, which seems to be a good number for its industry. Although, the oil spill was a very tragic event, I don’t think the company will go under, and I think that their nice juicy dividend should be good for a long time! Now I just need some money to pump (pun intended) into the stock since we currently only have about $100 to invest.
Notice in the chart above that they really haven’t recovered much from when the oil spill hit them the hardest!
Disclaimer: I’m researching this stock, I have not immediate plans to buy any shares within the next 72 hours, nor do I currently own any shares.
Thanks for reading