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!