In light of the recent history for BP shares, I understand why investors might be skeptical of this oil giant. The share price has gone nowhere, the dividend is frequently considered a candidate for a cut, and the debt burden is high. However, I wanted to share you with my basis for having a rosier outlook regarding the future for BP stock as well as the role that a potential dividend cut plays in my analysis of BP’s intrinsic value.
BP Share Price History: No Growth Since 1998 Due To Oil Spill
In January of 1998, BP stock traded at $38 per share. That is the same price that exists today. What gives?
The enormous culprit is the deadly Gulf of Mexico oil spill in 2010 which has a full tally cost of $62 billion for BP shareholders. That is extremely high and unlike any other costs from clean-up … Read the rest of this article!
Johnson & Johnson stock has grown its dividend by 13% since 1970 and has compounded wealth for JNJ shareholders at a clip of nearly 14% over that same time frame. When you pay attention to any list of excellent long-term income investments—whether the colloquialism of the day is “Dividend King” or “Dividend Aristocrat”—Johnson & Johnson finds itself on every list of blue-chip stocks.
Many of you have already read ad nauseam—perhaps from me!—about the characteristics of this healthcare giant that make it such a superior compounder over the long haul. However, I wanted to take a moment to discuss with you some of the reasons that has made Johnson & Johnson stock such a consistently superior compounder beyond the information that you have regularly encountered.
Why Johnson & Johnson Stock Keeps Growing
Remember our recent discussions about the advantages of using the holding company structure? Well, Johnson & Johnson is … Read the rest of this article!