BP - BP p.l.c.

NYSE - NYSE Delayed Price. Currency in USD
+0.39 (+1.00%)
At close: 4:01PM EDT
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Previous Close38.84
Bid39.04 x 900
Ask39.20 x 900
Day's Range38.94 - 39.26
52 Week Range36.28 - 47.16
Avg. Volume5,341,166
Market Cap132.04B
Beta (3Y Monthly)0.56
PE Ratio (TTM)13.40
EPS (TTM)2.93
Earnings DateN/A
Forward Dividend & Yield2.46 (6.33%)
Ex-Dividend Date2019-05-09
1y Target Est50.03
Trade prices are not sourced from all markets
  • Iran makes nuclear offer in return for U.S. lifting sanctions amid seizure of oil tanker
    Yahoo Finance Video3 days ago

    Iran makes nuclear offer in return for U.S. lifting sanctions amid seizure of oil tanker

    Iran says it seized an unidentified oil tanker, accusing 12 people of smuggling in 1 million liters of fuel, according to Iran state media. The incident occurred in the highly-trafficked Straight of Hormuz. Yahoo Finance's Seana Smith and Agora Financial Chief Market Strategist Alan Knuckman discuss.

  • Louisiana businesses brace for Tropical Storm Barry
    Yahoo Finance Video9 days ago

    Louisiana businesses brace for Tropical Storm Barry

    Tropical Storm Barry is expected to bring heavy rain and cause dangerous flooding across southeastern Louisiana.

  • Oil outlook amid Gulf of Mexico storm, Iran tensions
    Yahoo Finance Video9 days ago

    Oil outlook amid Gulf of Mexico storm, Iran tensions

    Oil is settling in for a weekly gain. This comes on new data from the U.S. Interior Department, which is reporting that oil production from the Gulf of Mexico has been cut by 59% due to tropical storm Barry. Yahoo Finance's Seana Smith is joined by Mark Sebastian, founder of Option Pit, to discuss.

  • Bloomberg17 hours ago

    Iran Confrontation With U.K. Reflects History of Bad Blood

    (Bloomberg) -- The reopening of the British embassy in Tehran was meant to usher in a new era in relations. As the Union Jack flag was raised above the lush, landscaped gardens of the complex in August 2015, then-Foreign Secretary Philip Hammond said the event marked “an important milestone.”That was just six weeks after an international accord was reached to restrict Iran’s nuclear program in return for relief from penalties that had strangled its economy. But since the accord started to unravel last year, tensions between Britain and Iran have been growing.Then came Friday’s dramatic seizure of a British-linked tanker in the Gulf, a tit-for-tat response to the U.K.’s detention of a vessel carrying Iranian oil through the Mediterranean Sea. The U.K. has threatened Iran with “serious consequences,” which could include a package of sanctions.How did things get so bad? The U.K. is after all part of a European trio trying to rescue the nuclear deal U.S. President Donald Trump pulled out of, triggering its demise. But it is also breaking away from the European Union and desperate for a free-trade agreement with the U.S., still the world’s dominant economy.It’s ComplicatedIn short, its geopolitical priorities are complex.Britain’s relations with Iran stretch back to the 1600s and are marked by periods of conflict, some were resolved fairly swiftly, others endure to this day. For example, Iranians still blame Britain for a famine 100 years ago. Underlying it all is a sense the U.K. is playing a double game.“Iranians are obsessed with the idea that the British are the arch-manipulators in the background, manipulating the U.S.,” said Ali Ansari, a professor of modern history in the Middle East at the U.K.’s University of St. Andrews. “It dominates the narrative in a way you’d never imagine.”Brexit-ravaged Britain is trapped in a political crisis, transitioning from one prime minister to another. The two Conservative candidates slugging it out to become leader also happen to be both the current and former foreign secretary: Jeremy Hunt and Boris Johnson, favored to win and whom Trump calls a friend.Iran was never a colony of the Empire on paper, but nevertheless the U.K. has wielded outsized influence in the country over centuries. During the Great Game of the 19th century, Victorian Britain and Tsarist Russia, battled for dominance in Central Asia, Persia was caught in the middle.Liquid GoldIt struggled to balance the demands of the two imperial powers and though Russia was always the more brutal of the two, Britain left deeper political scars. That’s partly because events of the early 20th century “altered the historical perspective,” Ansari said.Then, as now, those events revolved around oil.In 1901 British entrepreneur William Knox D’Arcy began searching for oil in Persia and under the terms of a deal struck with the monarchy, he became the sole owner of whatever oil he’d find, while Persia would get just 16% of profits annually and no say over how the company was run. The Anglo-Persian Oil Company was born seven years later when D’Arcy’s surveyors discovered crude beneath the southern desert.“Fortune brought us a prize from fairyland beyond our wildest dreams,” said Winston Churchill, who was in charge of the Navy at the time and oversaw its switch from coal to oil.Colonial BaggageThe British government injected new capital into the Company just before World War I, acquired a controlling interest and built the world’s largest refinery near the Persian Gulf to process the oil and ship it back to Britain.The Company ran the city like a virtual colony: British employees and their families lived in luxury in a peaceful oasis on one side of the city and non-British laborers in a shanty town on the other.Unsurprisingly, strikes and riots broke out sporadically. In 1951, as a wave of anti-colonialism swept the region, the Company was nationalized under the government of Prime Minister Mohammad Mosaddegh. Iran canceled its right to extract oil and seized its assets. Britain shut down refineries, blockaded Iran’s ports and froze Iranian bank accounts.When it became clear Mosaddegh had the upper hand, the U.K. lobbied the U.S. to install a shah sympathetic to the west. Together in 1953 they overthrew him in a coup.Birth of BPIranian oil began flowing again and the Company -- which had by then rebranded itself as British Petroleum and is now known as BP -- tried to regain its old position. But Iranian public opinion was so fiercely opposed the new government couldn’t let that happen. Instead it was forced to accept membership in a consortium of companies. After the repressive shah was exiled during 1979 Islamic Revolution, the anti-western regime of Ayatollah Ruhollah Khomeini nationalized the oil industry again.The seizure of the tanker carrying Iranian oil off the southern tip of Spain earlier this month, like most of U.S. policy toward Iran under Trump, has unified rival political factions. It’s also given the Islamic Republic’s stalwarts a fresh opportunity to attack Britain as an imperialist, colonialist, pro-monarchist power intent on meddling in Iran’s affairs.‘Queen’s Pirates’On July 6 -- two days after British forces seized a supertanker suspected of carrying Iranian oil to Syria -- Iranian media was swift to respond. The headline in the moderate Arman newspaper read “A U.S. Scenario with British Actors” while the reformist Aftab spoke of “Extremism in Gibraltar.” The ultra-hardline daily Kayhan has called for retaliation against “the Queen’s pirates.”The Iran-Iraq war of the 1980s, in which the U.K. backed Saddam Hussein, and a fatwa against the writer Salman Rushdie have been among low points in ties between Iran and Britain.More recently, the fate of U.K.-Iranian dual national Nazanin Zaghari-Ratcliffe -- held by Iran on spying charges since 2016 -- has poisoned the well.She’s recently been transferred from the notorious Evin prison to a hospital psychiatric ward and is barred from contacting her family. Johnson, as foreign minister, was widely criticized for contributing to her fate by saying publicly she was in Iran teaching journalism.Should he become prime minister, as is widely expected, the crisis with Iran will demand his immediate attention.Just before Friday’s extraordinary seizure of the tanker by Iran, Ayatollah Ali Khamenei said he wouldn’t allow the “evil” acts of Britain to go unanswered. Such menacing rhetoric was used back in 2011 in the run-up to an attack on the U.K. embassy in Tehran by hardliners.They left behind scrawl on walls that read “Death to England” near a portrait of Queen Elizabeth and a bust of Queen Victoria.Britain closed the embassy.(Adds latest U.K. actions.)\--With assistance from Tim Ross.To contact the reporters on this story: Caroline Alexander in London at calexander1@bloomberg.net;Golnar Motevalli in Tehran at gmotevalli@bloomberg.netTo contact the editors responsible for this story: Rosalind Mathieson at rmathieson3@bloomberg.net, Mark Williams, Flavia Krause-JacksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Market Realist2 days ago

    This Integrated Energy Stock Has the Most Potential

    As oil prices get volatile, it's imperative to know integrated energy stocks' outlook. Analysts’ mean price targets for Chevron (CVX), Royal Dutch Shell (RDS.A), ExxonMobil (XOM), BP (BP), Total (TOT), and Suncor Energy (SU) suggest that SU has the highest upside potential of 36%. TOT and RDS.A follow with 32% and 29% upside potential. This […]

  • Stable Dividend, Minimal Growth Makes Exxon Mobil Stock a Hold
    InvestorPlace2 days ago

    Stable Dividend, Minimal Growth Makes Exxon Mobil Stock a Hold

    Exxon Mobil (NYSE: XOM) stock is treading water. After rallying from roughly $69 in January up to over $83 in April, shares in the oil and gas giant have dipped below the $75 level.Source: Shutterstock While offering a solid dividend yield, a lack of catalysts means the XOM stock price will likely stay within the $70 to $80 trading range. Read on to see why Exxon Mobil stock continues to be a hold. Downstream Business Facing ChallengesFor the first quarter of 2019, the big oil firm saw quarterly earnings fall from $6 billion to $2.35 billion. Downstream (refining) was the biggest cause of the earnings decline.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOne-time events such as asset sales in Q4 can explain some of the downstream earnings decline. But the lion's share was due to lower refining margins. The downstream segment went from a $2.7 billion profit in Q4 2018 to a $256 million loss in Q1 2019. * 7 Stocks Top Investors Are Buying Now Scheduled maintenance was another factor in the downstream unit's weak performance. Moreover, the company expects to spend similar amounts on maintenance in Q2. Upstream Offers Stability in XOM StockWhile the downstream business faces headwinds, upstream provides some positives for the XOM stock price. The company continues to increase production in the Permian Basin. Exxon Mobil's exploration off the coast of Guyana has also yielded strong production opportunities.In their June 2019 JP Morgan Energy Conference presentation, Guyana and other projects provide a high internal rate of return with a low breakeven rate. The company's expertise in developing new production partially outweighs the cyclicality of the downstream refining business.The relative strength of the exploration and production segment has blunted refining challenges. But additional weakness across Exxon Mobil's other business lines could hurt Q2 results. Q2 Earnings OutlookExxon Mobil is scheduled to release Q2 earnings in early August. While the company expects improved refining margins, this may not be enough to counter additional issues. Analysts project the oil firm's natural gas and chemical businesses to lower operating earnings.A decline in natural gas prices offsets an estimated $400 million to $600 million boost to Exxon Mobil's profitability from increased crude oil prices. Low margins and continued maintenance negatively impact the chemical unit.While earnings growth does not appear to be in the cards, there is a positive takeaway: Exxon Mobil stock continues to pay out a solid dividend, providing income-oriented investors a strong reason to consider a position. XOM Remains a Dividend AristocratExxon Mobil stock has seen annual dividend increases for 37 consecutive years. The five-year average growth rate of the dividend is 5.6%. With a current dividend yield of 4.6%, XOM stock is a solid opportunity for passive-income investors.The XOM stock price receives strong price support from the dividend. This somewhat coerces Exxon Mobil to continue the payouts to keep shareholders happy.Without a long-time rise in oil prices, it may be tough for XOM to continue growing the dividend. However, thanks to continued global demand for oil, the company may have the long-term earnings growth necessary to sustain approximately six annual dividend increases.But can investors count on the dividend yield alone to deliver value? Is the current valuation sustainable, or could the XOM stock price see additional declines? Let's see how Exxon Mobil compares to its peers: Exxon Mobil Stock Overvalued Relative to PeersAt the current XOM stock price, the company trades for 20.2-times forward earnings, and an enterprise value (EV)/EBITDA ratio of 9.7. This valuation appears stretched relative to the company's integrated oil and gas rivals:BP (NYSE: BP): 13-times trailing earnings, EV/EBITDA of 6Chevron (NYSE: CVX): 16.9-times forward earnings, EV/EBITDA of 8ConocoPhillips (NYSE: COP): 12.4-times forward earnings, EV/EBITDA of 4.8Royal Dutch Shell (NYSE: RDS.A): 11-times earnings, EV/EBITDA of 5.9One may think that the XOM stock premium is the result of a high dividend. But Exxon Mobil stock does not have the highest yield: For instance, BP has a 6.26% yield, while Royal Dutch Shell sports a 5.94% yield. And Chevron and ConocoPhillips aren't too far behind at 3.83% and 2.04%, respectively.Therefore, looking at both earnings power and dividend yield, it is crystal clear Exxon Mobil stock is not an outstanding opportunity for value or dividend investors. Bottom Line: Exxon Mobil Stock Is a HoldExxon Mobil stock has been hammered by weak refining margins. Despite these risks, XOM stock trades at a premium to its fellow integrated oil and gas companies.The company continues to be a dividend aristocrat, raising the payout for the 37th consecutive year. The dividend yield is solid, but not as high as those paid by BP and Royal Dutch Shell.With improved refining margins, Q2 earnings (anticipated for early August) could satisfy investors. However, weakness in natural gas and chemicals could outweigh a rebound in refining margins.With upside questionable but downside protected by the dividend play, XOM stock is a hold. Investors should consider entering a position if the company starts trading at a discount to its peers.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Stable Dividend, Minimal Growth Makes Exxon Mobil Stock a Hold appeared first on InvestorPlace.

  • 6 Energy Stocks Spilling Lower
    InvestorPlace4 days ago

    6 Energy Stocks Spilling Lower

    U.S. equities are treading water on Wednesday as the latest earnings season continues and investors digest an increasing flow of results. Transportation stocks, which I discussed yesterday, are dropping in response to mixed guidance from CSX (NYSE:CSX), but that looks like a buying opportunity ahead of a likely Federal Reserve interest rate cut later this month.One area of the market not looking good for new money, however, is energy. Oil and gas companies across the board are suffering nasty-looking breakdowns as geopolitical tensions with Iran have failed to materialize into any actual supply disruptions. The U.S. shale industry is too revved up, with a lowered cost base keeping the spigots turned on even as crude oil prices stagnate near $60. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip With the likes of Russia and Saudi Arabia unable to cut production enough to boost prices, the weakness looks set to continue. Here are six stocks to sell now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Energy Stocks Spilling Lower: Marathon Oil (MRO)Shares of Marathon Oil (NYSE:MRO) are breaking down, threatening a return to the December lows and setting up a possible decline to the summer 2017 lows near $10.50. Such a move would be worth a loss of more than 20% from here. Shares were recently downgraded to neutral by analysts at Atlantic Securities.The company will next report results on Aug. 7 after the close. Analysts are looking for earnings of 16 cents per share on revenues of $1.4 billion. When the company last reported on May 1, earnings of 31 cents per share beat estimates by 24 cents on a 30.9% decline in revenues. Nabors Industries (NBR)Nabors Industries (NYSE:NBR), which provides drilling services to the onshore and offshore oil industry, is also suffering breakdown out of its recent trading range, That's setting up a possible excursion back to its December lows. Shares are already down a whopping 86% from the high seen in early 2017 as oil prices hold steady near $60 a barrel. * 7 Dependable Dividend Stocks to Buy The company will next report results on July 29 after the close. Analysts are looking for a loss of 22 cents per share on revenues of $802 million. When the company last reported on April 30, a loss of 36 cents missed estimates by 10 cents on a 10.2% rise in revenues. BP Amoco (BP)BP Amoco (NYSE:BP) shares are falling away from a multi-month challenge of its 200-day moving average. That's confirming a messy-looking head-and-shoulders reversal pattern that traces to a low of $37. That would mark a test of the December low. The stock has been in a sideways pattern since the summer of 2018, unable to top resistance near the $45-a-share threshold.The company will next report results on July 30. Analysts are looking for earnings of 80 cents per share on revenues of $72 billion. When the company last reported on April 30, earnings of 70 cents per share beat estimates by 3 cents on a 2.7% decline in revenues. Transocean (RIG)Transocean (NYSE:RIG), which provides offshore drilling services including the ultra-deepwater segment, is falling away from its 50-day moving average and setting up a retest of the June low. The stock has already fallen below a multiyear trading range between $14 and $8 per share. The range was in play between 2015 and 2019. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The company will next report results on July 29 after the close. Analysts are looking for a loss of 33 cents per share on revenues of $766 million. When the company last reported on April 29, a loss of 30 cents beat estimates by a penny on a 13.6% rise in revenues. EnCana (ECA)Canadian oil company EnCana (NYSE:ECA) has violated its June low, which in turn violated its December low. That cleared the way for a decline to levels not seen since early 2016. Shares of lost more than two-thirds of their value from the highs seen as recently as late last year. The company recently announced it would sell its Arkoma Basin natural gas assets for $165 million.The company will next report results on July 31 before the bell. Analysts are looking for earnings of 18 cents per share on revenues of just over $2 billion. When the company last reported on April 30, earnings of 14 cents per share beat estimates by five cents. Devon Energy (DVN)Devon Energy (NYSE:DVN) is an independent oil and gas company based in Oklahoma. It has broken down out of its lower Bollinger Band to shy away yet again from its 200-day moving average. Watch for a decline back to the early June low and a likely violation back to the December low near $20. Such a move would be worth a loss of roughly 20% from here. * 10 Stocks to Sell for an Economic Slowdown The company will next report results on Aug. 6 after the close. Analysts are looking for earnings of 42 cents per share on revenues of $2.2 billion. When the company last reported on April 30, earnings of 36 cents per share beat estimates by eight cents.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 6 Energy Stocks Spilling Lower appeared first on InvestorPlace.

  • 3 Best Dividend Stocks to Buy in the Energy Sector
    InvestorPlace4 days ago

    3 Best Dividend Stocks to Buy in the Energy Sector

    The classic equity sectors to hunt for yield have been defense, consumer staples, and utilities. The idea has always been that these sectors provide less in the way of capital gains, compared to more volatile high-flying sectors like technology, but in exchange for the more moderate capital gains, investors get stability and yield.This year, however, as investors have tried to navigate the tail end of the business cycle and changing stances by the Federal Reserve, fund flows have gone to those classic defensive sectors. The result is double digit gains for the stock itself pre-dividend in year to date performance. Consumer Staples Select (NYSEARCA:XLP) is up almost 19%. The utility ETF Utilities SPDR (NYSEARCA:XLU) is not far behind, up 15%.Dividend yields have fallen under this scenario, and XLU yields just 3%, while XLP yields just 2.7%. It's clear then, that investors are going to need to look elsewhere for higher yields.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Energy, being rather out of favor this year, is offering some compelling opportunities. Dividend Stocks to Buy: Energy Transfer LPDividend Yield: 8.2%Energy Transfer (NYSE:ET) has been steadily executing on the strategic front. They have expanded their presence to China to meet growing demand for LNG and NGL products by opening an office in Beijing earlier in the year. ET signed a letter of intent with Sunoco (NYSE:SUN) to enter into a joint venture on a diesel fuel pipeline to West Texas. They have sold interests in certain pipelines to raise capital at attractive prices.Regardless of how the overall market is treating the energy sector, especially midstream master limited partnerships (MLPs), ET has not missed a beat. Financials are in good order with a distribution cash coverage ratio of 2.07x. Fiscal year adjusted EBITDA forecast of $10.7 billion have been reaffirmed.All the while the business keeps expanding. Plans on a Bakken pipeline optimization project will start next year. And on the Permian side, ET is expanding its Permian Express pipeline system by an incremental 120,000 barrels per day. The Permian Express 4 expansion is expected to be in service by the end of the third quarter of 2019.Cash flows are extremely healthy. The dividend is secure. And new projects are fueling growth. The future for ET looks better than good. DCP MidstreamDividend Yield: 10%DCP Midstream (NYSE:DCP) reported a strong first quarter yet yields remain sky high. This presents a great opportunity for patient investors who understand that equity sectors go on rotation and that there will be a day when the market wakes up and realizes how cheap companies have gotten.DCP owns and operates more than 60 plants and 64,000 miles of natural gas and natural gas liquids pipelines across 9 states. On this diverse base of assets, the company generated record distributable cash flow of $224 million in the first quarter. This puts the distribution coverage ratio at 1.45 times. So, despite difficult times for the sector, a best-in-class operator will still produce best-in-class results.NGL Energy Partner's (NYSE:NGL) pipeline throughput volumes was extremely strong, increasing approximately 30% year-over-year. In particular, Sand Hills and Southern Hills drove higher volumes. As a result, adjusted EBITDA set a record as well for the quarter. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Somehow DCP is just sitting there yielding 10%. Take advantage of the mispricing. BPDividend Yield: 6%BP (NYSE:BP) has a plan in place to secure long-term cash flow distributions to shareholders. Oil prices have been volatile, but their turnaround strategy is well underway.There are a number of ramp-up projects, three of which came on stream in Q1, and another that is scheduled to come on stream in Q2. These ramp-ups should make up for some lost volume that has certain analysts concerned.The good news is that most of the major turnarounds are behind BP, so the company is now in more of a steady state. There will be some impact in Q2 but not to the extent that the market seems to be pricing in.Lubricants, which has been a great business, has recently run into some issues with base oil prices, but management indicates that is leveling off. BP has made major efforts starting late last year to make that department more efficient, so there are ways to work around the headwinds.A recovery across a couple of BP's business lines going forward, in addition to the refinery system readying to go "full tilt" in 2020, has positioned the company well both from a growth and cash flow standpoint. Being paid 6% for the company's thought through strategy to play off isn't a bad deal. As of this writing, Luce Emerson was long shares of Energy Transfer LP. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Best Dividend Stocks to Buy in the Energy Sector appeared first on InvestorPlace.

  • Will Total Post Weaker Q2 Earnings Than Its Peers?
    Market Realist4 days ago

    Will Total Post Weaker Q2 Earnings Than Its Peers?

    Total SA (TOT) is scheduled to announce its second-quarter results on July 25. Analysts expect the company to post 2% lower earnings YoY in the second quarter.

  • London markets fail to gain from falling pound as Trump reignites trade war fears
    MarketWatch4 days ago

    London markets fail to gain from falling pound as Trump reignites trade war fears

    London markets drifted lower as the pound continued its descent and fresh trade war fears hit the FTSE 100.

  • Charities are trapped into taking tainted money from corporations
    Quartz4 days ago

    Charities are trapped into taking tainted money from corporations

    Activists don't want the arts funded by Big Oil. But they're light on alternative solutions.

  • BP (BP) Dips More Than Broader Markets: What You Should Know
    Zacks5 days ago

    BP (BP) Dips More Than Broader Markets: What You Should Know

    BP (BP) closed the most recent trading day at $40.21, moving -1.18% from the previous trading session.

  • Oil Price Spurts as Tensions Intensify in the Strait of Hormuz
    Zacks9 days ago

    Oil Price Spurts as Tensions Intensify in the Strait of Hormuz

    The Strait of Hormuz, where the BP-operated oil tanker was "harassed," is touted as the most important global passageway for transporting crude.

  • 5 ETFs & Stocks Riding High on Oil Rebound
    Zacks9 days ago

    5 ETFs & Stocks Riding High on Oil Rebound

    Oil prices strongly rebounded from a bear territory hit in early June, with U.S. crude comfortably trading above $60.

  • Will Shell’s Q2 Earnings Outperform Peers?
    Market Realist9 days ago

    Will Shell’s Q2 Earnings Outperform Peers?

    Shell’s Q2 earnings are expected to rise year-over-year.

  • Exxon Stock Is the Best Long-Term Oil Dependency Bet
    InvestorPlace9 days ago

    Exxon Stock Is the Best Long-Term Oil Dependency Bet

    The past several months have proven tough on Exxon Mobil (NYSE:XOM) shareholders. Indeed, Exxon stock has proven tough to own for the past several years.Source: Shutterstock While rivals like Chevron (NYSE:CVX) and BP (NYSE:BP) have, for the most part, fought their way back from their 2015 funk, Exxon Mobil hasn't been able to do the same.It's upcoming Q2 report isn't expected to be a barn-burner either, with weakness from its gas and chemical business expected to offset renewed strength from its downstream arm.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half So far, Exxon has been the disappointment investors and analysts alike expected it to be when it took a more aggressive path coming out of 2015's oil rout.That is, rather than act conservatively and defensively, Exxon Mobil is ramping up its bets on hydrocarbons. Next year's capital expenditures are budgeted 16% higher than this year's as part of an eye-popping plan to double 2017's income of $15 million by 2025.There may be a method to the madness, however, that current and would be XOM stock owners have to embrace. Exxon Stock in the Long TermMost oil companies, and other types of companies for the matter, seek a balance of short-term and long-term success. Exxon Mobil is far more concerned about the latter, and much less concerned about the former.The company has never explicitly said this. Rather, one must read between the lines.Exxon repeatedly has featured outlooks like this one, presented at the recent JP Morgan Energy Conference. In it the company claims that 2025 is a key milestone in terms of results. Simultaneously, Exxon is imagining what the oil market will look like not in 2020, but in 2040.Rivals are doing the same, to be fair, albeit nowhere near to the same extent.And, contrary to many hopes and dreams for a carbon-free world by then, we're likely to be burning more gas and oil then rather than less. The IEA report Exxon is relying on suggests we'll need, globally, on the order of 110 million barrels of oil per day within two decades. That's up from around 90 million barrels now.As for natural gas, the same forecasters anticipate the world will need around 450 billion cubic feet per day. We're presently using roughly 350 billion barrels per day.We're also depleting known gas and oil reserves in the meantime, forcing us to continue the hunt for more.That's where Exxon Mobil's capital expenditure plan, as big it feels, is actually dwarfed. The $150 billion or so the company will have laid out on new projects and improvements to existing properties is only a fraction of the $21 trillion the IEA says will need to be invested in order to meet that demand. Bottom Line on Exxon StockIt's worth noting that not every observer expects the consumption of oil to continue growing through 2040 and perhaps beyond. Bank of America analysts expect demand to peak in 2030 and then slide lower at a brisk clip after that.The paradigm shift's cause? The adoption of electric cars could force the energy market past its tipping point.If B of A is right, then Exxon Mobil's spending is largely for naught and XOM stock itself could face even greater pressure than it's faced in recent years.That's an oversized 'if' though. As uncertain as oil's future may be, the plausible supply of lithium needed to make the batteries that power EVs is even more obscured.Like any other commodity, the greater the demand for lithium on a so-far-strained supply, the more possible it becomes that electric vehicles become unaffordable.At the very least, all the infrastructure needed to refine oil and fill up vehicles with gasoline already exists.Whatever the reason, Exxon Mobil is in many regards going for broke. It's only given biologically-made fuels a modest look, while other names in the business appear to assume alternatives to drilling are the inevitable future.While Exxon's rivals are cautious about taking on new drilling prospects, Exxon is forging ahead as if little will change over the course of the coming two decades. It's made a huge bet on conventional oil and gas drilling in Guyuna.If the foreseeable future is indeed one that still relies on oil, Exxon Mobil will be at least five years ahead of its rivals.That's another big 'if' though.The only real certainty here is that investors won't be getting clear answers about the wisdom of the decision for at least a few more years. That makes XOM stock a tough name to bet on in the meantime, though perhaps the only game in town if the bets pay off.Either way, Exxon has to be viewed through a long-term lens.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Exxon Stock Is the Best Long-Term Oil Dependency Bet appeared first on InvestorPlace.

  • 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond
    InvestorPlace10 days ago

    10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond

    It's not terribly easy out there for income investors at the moment. Dividend stocks to buy are tough to find. Equity markets are at all-time highs, meaning valuations are stretched -- and dividend yields are lower. Treasury yields have fallen amid expectations for a Fed rate cut: getting income from bonds is no easy task, either.Many longtime dividend growth stalwarts -- think McDonald's (NYSE:MCD) or Procter & Gamble (NYSE:PG) -- trade at all time highs. Those that aren't seem to be struggling, with the likes of General Electric (NYSE:GE), Kraft Heinz (NASDAQ:KHC), and Anheuser-Busch (NYSE:BUD) all cutting their dividends in recent years. Finding the middle ground -- an attractive valuation combined with a solid business -- is exceedingly difficult right now.Given lower commissions, investors can sell off small parts of their holdings for income -- most of which should have appreciated nicely in this decade-long bull market. But income investors usually are looking for "set it and forget it" dividend stocks to buy, not constant portfolio trading.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell for an Economic Slowdown These 10 stocks don't quite qualify as "set it and forget it" plays. All have some degree of risk. But the risks seem worth taking for the potential rewards, which include near-term income, longer-term growth, and potential capital appreciation. As such, investors should take at least a long look at these 10 dividend plays. Broadcom (AVGO)Dividend Yield: 3.8%Broadcom (NASDAQ:AVGO) requires quite a bit of trust in management. The semiconductor giant has been built through acquisitions. As of late, AVGO has started moving away from chips and into software.Last year, the company acquired CA Technologies, an enterprise software play with a big presence in mainframe applications. Broadcom is now reportedly in talks to take over security play Symantec (NASDAQ:SYMC).Investors haven't particularly liked either deal. AVGO stock fell on the news of the CA deal. It has slipped again as reports of the Symantec acquisition leaked. But CEO Hock Tan certainly deserves the benefit of the doubt at this point. And the decline after the CA announcement, in particular, proved a buying opportunity: before the recent pullback, AVGO shares had risen some 50% in roughly a year.AVGO may not provide that type of return over the next year -- but there's still a nice bull case here on another merger-related dip. AVGO yields 3.8%. The Symantec deal will add to the company's significant free cash flow, which keeps that yield secure. Diversification in the existing chip business limits the cyclical impact on earnings -- and AVGO shares. Investors do have to trust Hock Tan at this point -- but history shows they probably should. Kellogg (K)Dividend Yield: 4%On its face, Kellogg (NYSE:K) seems like a safe value play for income investors. Shares of the iconic American company trade for just 13x 2020 EPS estimates. Kellogg's dividend yields just over 4%. K historically has been a defensive stock, providing protection if the broader economy stumbles.But K stock is actually dangerous at this point. It's one of many consumer stocks struggling to adapt to a new reality, as I detailed last year. Grocers like Kroger (NYSE:KR) are looking to private-label and own brands to protect their thin margins. Cereal demand is falling. As a result, Kellogg's earnings are heading in the wrong direction.Revenue is guided to increase just 1-2% this year excluding the impact of currency and the company's divestiture of several smaller brands. Adjusted operating income, on the same basis, is expected to be roughly flat. Guidance suggests overall non-GAAP earnings per share will decline more than 10% year-over-year.In other words, Kellogg isn't a defensive stock at this point. It's a turnaround play. And like with KHC and BUD, that creates downside risk if the turnaround stumbles.For investors who understand the risks, however, K stock is intriguing. As Barron's detailed just last week, the company's Morningstar Farms business seems notably undervalued. It's larger by revenue than Beyond Meat (NASDAQ:BYND), which has soared to a $10 billion market cap. Kellogg (including debt) is valued at just $28 billion; a sale or IPO of Morningstar could unlock significant value. * 7 Retail Stocks to Buy for the Second Half of 2019 Again, this is not the traditional, low-risk, dividend stock it used to be. But if Kellogg can jumpstart growth and monetize Morningstar, K stock could have enormous upside ahead. Gap (GPS)Dividend Yield: 5.4%The case for Gap (NYSE:GPS), particularly with the stock threatening a seven-year low, is that investors are missing the real story here. As I wrote back in November, Gap stock isn't about its Gap brand; it's about Old Navy, which likely generates somewhere in the range of three-quarters of operating profit.With Gap planning to spin off Old Navy later this year, that value might be unlocked. In the meantime, GPS stock yields 5.4%, a figure that might rise after the split.There are risks here, to be sure. Luke Lango called GPS stock one of the six worst in the S&P 500 in the first half -- and he's not wrong. GPS shares have plunged.Old Navy's sales performance in the last two quarters have not been particularly impressive. Sales for the Gap brand continue to decline. In fact, analysts asked repeatedly on the Q1 conference call if the spin-off would still move forward: there's a risk that Gap and Banana Republic might not be enough to support a standalone company, even with growth from athleisure concept Athleta.Even a weaker-than-expected Old Navy still likely supports the entire valuation of GPS stock at the moment. The balance sheet is in good shape, and free cash flow continues to be impressive. Income investors can get yield now -- and if all goes well, by next year own growth at Old Navy and income from the company's other brands. SL Green (SLG)Dividend Yield: 4.2%REITs (real estate investment trusts) like SL Green (NYSE:SLG) long have been income investors favorites. REITs allow for diversified exposure to real estate. They offer tax benefits as well: as long as they pay out 90% of taxable income, they pay no tax at the corporate level.In an environment where 10-year Treasury bonds are yielding barely 2%, however, investors looking for dividend stocks to buy have the same difficulty in REITs as in the rest of the market. High-yield REITs generally have some flaws; most notably, even the best retail REITs like Simon Property Group (NYSE:SPG) and Macerich (NYSE:MAC) have struggled amid long-term concerns about demand. The more attractive plays, meanwhile, have been bid up as investors look for lower-risk yield.SL Green might be a nice middle ground. The stock has struggled for years now; in fact, it touched a five-year low late last year. Worries about the health of New York City real estate seem to be the culprit. Weakness in the company's suburban assets hasn't helped, either. * 10 Best Stocks for 2019: A Volatile First Half But SL Green largely has exited the suburban business, refocusing on Manhattan. The dividend continues to rise. And longer-term, NYC still seems an attractive real estate market. With a 4.2% dividend, SLG provides attractive income. At 12x FFO (funds from operations, a typical REIT metric), it could provide upside as well if sentiment toward Manhattan real estate improves. Avista (AVA)Dividend Yield: 3.48%Utility stocks like Avista (NYSE:AVA) are another common area of focus for income investors. And like REITs, valuation is a question mark: the Utilities SPDR (NYSEARCA:XLU) is up 16% over the past year, a big move for a traditionally low-volatility sector.But AVA looks like one of the more attractive picks in the industry at the moment. The stock plunged late last year after a potential acquisition by Canada's Hydro One (OTCMKTS:HRNNF) was called off. Slowly but surely, however, dip-buyers have entered -- and there could be more buying ahead.Avista provides a solid 3.48% dividend yield. Its markets in Washington State, Idaho, and Montana are seeing strong population growth. Valuation is reasonable, and AVA still sits back at 2016 levels.It's likely the Hydro One deal -- announced in 2017 -- led to some dislocation among Hydro One's investor base. If that's the case, there's an opportunity for AVA to catch up to the rest of its sector as income investors return to the story. International Game Technology (IGT)Dividend Yield: 6%The risks facing International Game Technology (NYSE:IGT) are almost self-evident. Gaming stocks traditionally struggle in recessions. Suppliers like IGT generally aren't hit quite as hard, and the company's lottery business should provide support if the economy turns. But there is a decent amount of cyclical risk here.A good chunk of the company's profit comes from Italy, where economic growth has been stagnant and political risk seems high. The U.S. slot business has lost market share to smaller operators like Aristocrat Leisure (OTCMKTS:ARLUF) and PlayAGS (NYSE:AGS). On top of all that, IGT has nearly $7 billion in debt. The 6% yield here is attractive -- but on its own not reason enough to buy IGT stock.That said, there are reasons to buy, and in fact I personally own IGT shares. Free cash flow should ramp in the next two years, as the company moves past upfront payments required to maintain its concessions in Italy. The lottery business throws off cash as well. Debt should come down, and the U.S. slot business is showing signs of improvement. * 7 A-Rated Stocks to Buy for the Rest of 2019 The rewards here are enormous as well. As I wrote last month, Wall Street sees huge upside for IGT. The average target price near $21 is 56% higher than IGT's current price. If IGT can get the U.S. business back on track and use the cash flow from Italy to pay down debt, its stock could have a big move ahead. State Street (STT)Dividend Yield: 4%State Street (NYSE:STT) is a clear "value trap or value play?" argument at the moment. For the last 18 months, investors have made their thoughts clear: STT stock has dropped by roughly 50%.And State Street is fighting headwinds. The company rolled out the first ETF -- the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) -- but has since been passed by Vanguard and BlackRock (NYSE:BLK) in that key business. The same shift to passive investing driving ETF growth has pressured the company's asset management business. In Q1, fee revenue declined 4% year-over-year; earnings per share declined 27%.Cost-cutting simply hasn't done quite enough to protect margins, leading to the recent pressure on STT stock. But at this point, there's a question as to whether the sell-off simply has gone too far. STT stock is quite cheap, at less than 8x 2020 EPS estimates. Price-to-book has dipped below 1x for the first time in over five years.Meanwhile, a recent dividend hike moves the yield near 4%, and STT will repurchase $2 billion worth of stock as well. State Street has to find a way to manage pressure on its custody and management businesses -- but if it can, there's potential for a big reversal in STT stock. CVS Health (CVS)Dividend Yield: 3.6%Source: Shutterstock CVS Health (NYSE:CVS) has had a rough go of it in recent years. In March, CVS stock touched its lowest level in almost six years, and it has re-tested those lows several times since. The acquisition of Aetna is under review even after it closed. Lower reimbursement rates and reduced savings on generic drugs are pressuring the entire pharmacy sector: rivals Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) are struggling as well.But as I wrote this week, to at least some extent all of those headwinds seem priced in. CVS stock trades at historically low multiples. There are still benefits to come from the company's efforts to change healthcare, and the integration of Aetna with its existing pharmacy business. * 7 Retail Stocks to Buy That Are Down in 2019 The headwinds are real, and the sell-off in CVS stock does make some sense. But this remains an attractive business that is now priced for steady declines going forward. It will take little in the way of an upside surprise for CVS to outperform expectations -- and for CVS stock to claw back at least some of its recent losses. BP (BP)Dividend Yield: 6%For BP (NYSE:BP), the case is reasonably simple. BP is the integrated energy company with the best dividend yield, which currently nears 6%. With liabilities relating to the Deepwater Horizon tragedy finally behind the company, cash flow and earnings will improve as BP gets back to "normal."That's a case I've made for some eighteen months now -- and it still holds. Oil price movements might seem a risk -- but BP's downstream businesses benefit from lower crude prices, which mitigates that effect somewhat. In this market, BP stock might even be considered among the safer plays out there, as counterintuitive as that sounds. For a 6% yield the modest risks here seem worth taking. Bristol-Myers Squibb (BMY)Dividend Yield: 3.6%Pharmaceutical companies, too, used to be a safe haven for income investors. They generally offered dividend yields of at least 2% -- and protection from market and economic downturns. That's no longer the case, however -- which highlights the potential risk in Bristol-Myers Squibb (NYSE:BMY).U.S. companies, in particular, have struggled to find blockbusters. As a result, patent expirations on key product lead companies to search for growth however it can be found. For Bristol-Myers Squibb, products like Orencia (which treats rheumatoid arthritis) and blood thinner Eliquis are losing their protection shortly. And so the company went and acquired biotechnology major Celgene (NASDAQ:CELG).Unfortunately for BMY stock, investors hated the deal. BMY shares dropped 13%. They liked it less when Bristol-Myers announced last month that it would divest psoriasis treatment Otezla as required by regulators. BMY once again threatened a six-year low.But at this point, BMY is starting to look attractive. Even if the company overpaid for Celgene, to some extent that's baked into the stock price. The dividend yield now sits at 3.6% -- and could rise once the acquisition is completed. A 10x forward P/E multiple will come down as well.Pharma stocks are riskier than they used to be -- especially for those using debt to drive growth. Mallinckrodt (NYSE:MNK) is a good example of how pharmaceutical M&A can go terribly wrong. But Bristol-Myers Squibb's diversified base and long history suggest the downside shouldn't be that steep. And as Celgene comes on board and growth returns, investors might again start focusing on the potential rewards.As of this writing, Vince Martin is long shares of Gap Inc. and International Game Technology. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond appeared first on InvestorPlace.

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