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BP Shares (LON :BP) – Dividend, Price Chart, and AnalysForecast

Sam Boughedda trader
Updated 2 Apr 2024

BP (LON: BP) is an oil and gas company with an extensive history. Since its founding, the company has evolved to become one of the leading players in the energy market.

Similar to Shell, BP operates across various segments, including upstream, downstream, and renewable energy. In the upstream segment, BP focuses on the exploration and production of oil and natural gas, with a diverse portfolio of assets in conventional and unconventional resources. 

In the downstream segment, BP's extensive network of fuel stations caters to millions of customers globally, offering a wide range of products such as retail fuels. Furthermore, BP has made significant strides in the renewable energy sector, with numerous projects aimed at contributing to the sustainable energy market.

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Stay Updated with BP

Stay tuned for the latest news and updates on BP's developments, initiatives, and performance in the energy sector. Whether you're an investor, industry professional, or simply interested in the energy market, keeping track of BP's progress is essential for staying informed about the ever-evolving landscape of global energy production and consumption.

BP, A Brief History

BP plc is a leading British oil and gas company with a history that dates back to 1909 when oil was discovered in Iran. The company's name originates from the Anglo-Persian Oil Company, which was later renamed British Petroleum. Over the years, BP has experienced substantial growth, expanding its operations across diverse global regions, including Europe, Asia, the Americas, and beyond. 

As a prominent constituent of the FTSE 100 Index, BP's presence on the London Stock Exchange underscores its position as a key player in the global energy sector.

While recognised primarily as an oil and gas company, BP has more recently made significant strides in renewable energy ventures as governments continue to press for energy alternatives. The company has made notable forays into sectors such as wind, solar, hydrogen, and biofuels, demonstrating its commitment to diversifying its energy portfolio and embracing potential future trends.

BP Share Price & Dividend

Since its lows in 2020, the BP share price has experienced a strong rally, climbing to above the 500p per share mark as geopolitical concerns and demand following the lifting of pandemic restrictions boosted the price of oil. However, looking back further, long-term share price growth from BP has been somewhat non-existent. It's not all bad for shareholders, though, with BP being a go-to stock for many investors looking to add a dividend name to their portfolio. 

BP EPS and Revenue Breakdown 2020-2023

BPAnnual EPSAnnual Revenue
2020$-6.03$183.50 billion
2021$2.24$164.20 billion
2022$-0.79$248.89 billion
2023$5.15$213.03 billion

Oil & Gas Industry : How Does BP Dividend Compare?

Latest BP News

BP Share Price Forecast

The BP price target was lifted to $40 from $38 by Piper Sandler in a recent research note, with the firm keeping a Neutral rating on the stock. Piper Sandler analysts believe supportive commodity prices and low-cost structures are generating robust free cash flow for the oil and gas giant. In addition, they noted downstream markets remain tight, and volume/CFO growth is strong, supported by deep, quality resource bases. However, the depth and quality of BP's upstream resources diverge materially across the company, which Piper Sandler said will have an impact on relative capital efficiency and the long-term sustainability of CFO/free cash flow growth.

Meanwhile, Jefferies upgraded BP to Buy from Hold in a recent note, lifting its price target for the stock to $42.30 from $38.60 per share. The firm believes the stock will continue to close its valuation gap versus peers, supported by BP's focus on distributions, reduced CapEx risk and relatively conservative consensus earnings growth expectations. 

Our View: While BP doesn't move like a tech/growth stock, shareholders value the name due to its solid dividend payout history. In the world of analyst predictions, the BP share price forecast for 2025 on consensus would seem to one that is likely to continue improving. If you are an investor looking for a dividend stock to add to your portfolio, BP is definitely one to consider, with the current dividend yield at 4.54% (as of Q1 2024). 

Who Should Buy BP Shares

When considering investing in BP shares, it's crucial to evaluate if they align with your investment objectives and risk tolerance. Several factors should be taken into account when determining the suitability of this stock for an investor's portfolio.

BP may be suitable for investors with a moderate risk tolerance. The energy sector, including oil and gas companies like BP, can be impacted by geopolitical events, commodity price fluctuations, and regulatory changes. However, BP offers a reliable dividend, which can provide some stability despite sector volatility.

Investors seeking fast capital appreciation may not find BP attractive, as its share price has been somewhat non-existent. Therefore, it is more suited to investors looking for dividend-paying stocks, as it has a solid track record of sharing profits with shareholders. The LON: BP dividend historically offers competitive yields and continues to offer value.

Of course, an oil and gas company is not at the top of environmentally conscious investors' lists. While BP has made commitments to reduce carbon emissions, invest in renewable energy, and undertake wind farm projects, the oil and gas industry doesn't generally align with investors focused on environmentally friendly stocks.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.