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@UndyingValue 1 month ago

BP yielding 5.6% while oil prices forecasted to drop

BP yielding 5.6% while oil prices forecasted to drop

Energy stocks have been lagging as oil and gas prices cool off. The EIA is predicting crude could drop to around $55 average this year. BP is down about 15% from its 2023 highs, pushing the dividend yield up to 5.6%. The "Peak Oil" theory is being pushed back to 2050 by agencies like the IEA, so traditional assets are still useful. BP is also moving into renewables like offshore wind and solar to hedge, though they recently took a $4-5B impairment on that side of the business. The dividend history isn't perfect since they cut during big oil crashes, but if you want income with a hedge for the energy transition, it's trading at a decent entry point.
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@IsabelLynn 1 month ago

it's interesting to see bp hedging with offshore wind even with those big impairments. do you think they'll stay committed to green energy if oil stays low?