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?
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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 … Read the rest of this article!