After generating results beyond expectations, BP plc (NYSE:BP) was upgraded today by Goldman Sachs (NYSE:GS) from "Neutral" to "Buy" on the stronger-than-expected quarter and valuation.
Citing the attractive valuation whereby BP is trading at a 2011E 14% EV/DACF discount after paying out liabilities after the Gulf of Mexico oil spill, they see the company beginning to come back.
There is also light at the end of the tunnel for selling off its assets, which is probably more of a positive than most analysts and commentators note, as it's helping them to whittle down the non-core assets to be a much stronger company over time. So far they've raised about $14 billion, with another approximate $16 billion targeted for sale within the next year.
That puts them in a more predictable light, which makes shareholders and investors less nervous.
Goldman also likes that BP raised their earnings per share estimates for the next three years.
Finally, the reinstatement of the dividend, which is gaining steam, could end up with the income investor base returning said Goldman.
Goldman sees them reinstating the dividend at probably $0.08, and over the next couple of years increasing it to about $0.11.
BP closed Wednesday at $42.37, gaining $0.95, or 2.29 percent.
Showing posts with label Dividend. Show all posts
Showing posts with label Dividend. Show all posts
Thursday, November 4, 2010
Monday, November 1, 2010
BP's (NYSE:BP) Earnings Should Mirror Last Year
Earnings for the quarter by BP (NYSE:BP), expected to be released November 2, on average look to come in at close to where they did last year, when they were $1.50 a share.
Analysts have a $0.15 spread on the earnings, coming in as low as $1.44 share to as high as $1.59 a share. If it meets somewhere in the middle, it'll be very close to last year's performance. Not bad considering the challenges they face.
Consensus this quarter is at $1.51 a share on revenue of $72.46 billion.
Shareholders have been pressing new CEO Bob Dudley and the board of directors to reinstate the dividend.
Analysts have a $0.15 spread on the earnings, coming in as low as $1.44 share to as high as $1.59 a share. If it meets somewhere in the middle, it'll be very close to last year's performance. Not bad considering the challenges they face.
Consensus this quarter is at $1.51 a share on revenue of $72.46 billion.
Shareholders have been pressing new CEO Bob Dudley and the board of directors to reinstate the dividend.
Monday, October 25, 2010
BP (NYSE:BP) Takeover Speculation and the Dividend
Mounting pressure on BP's (NYSE:BP) Bob Dudley to reinstate the dividend says something about the way shareholders view the company, and if they believe the management has confidence going forward.
Continuing speculation the company could be ripe for a takeover isn't without some justification, as numerous elements remain in place that haven't been resolved, and make it difficult, if not impossible, to bring the dividend back.
From the point of view of BP shareholders, they can't understand the numerous variables involved in the underlying reasons behind decision-making at BP, but one thing almost all shareholders understand, no matter what company of sector they're in, is if they increase the dividend or have a dividend, the company has confidence in its future prospects.
For that reason, if BP is able to, they will reinstate the dividend as soon as possible. If not, they could be announcing to their shareholders and competitors they're on the auction block.
In the near future, shareholders don't have to understand the complexities surrounding the fallout coming from the Gulf disaster, all they have to do is wait to see if the dividend is reinstated.
If it isn't, BP is saying through their action, or rather, non-action, they have no confidence at the time for the prospects of the company. If they do that for too many quarters, shareholders will start to flee the company, especially large institutional investors, and BP will have little, if any, defense against being taken over by a larger rival.
The only other option would probably be to split the company up.
Shareholders are getting impatient, and CEO Bob Dudley, and the board of directors, if at all possible, need to get the dividend reinstated asap.
Continuing speculation the company could be ripe for a takeover isn't without some justification, as numerous elements remain in place that haven't been resolved, and make it difficult, if not impossible, to bring the dividend back.
From the point of view of BP shareholders, they can't understand the numerous variables involved in the underlying reasons behind decision-making at BP, but one thing almost all shareholders understand, no matter what company of sector they're in, is if they increase the dividend or have a dividend, the company has confidence in its future prospects.
For that reason, if BP is able to, they will reinstate the dividend as soon as possible. If not, they could be announcing to their shareholders and competitors they're on the auction block.
In the near future, shareholders don't have to understand the complexities surrounding the fallout coming from the Gulf disaster, all they have to do is wait to see if the dividend is reinstated.
If it isn't, BP is saying through their action, or rather, non-action, they have no confidence at the time for the prospects of the company. If they do that for too many quarters, shareholders will start to flee the company, especially large institutional investors, and BP will have little, if any, defense against being taken over by a larger rival.
The only other option would probably be to split the company up.
Shareholders are getting impatient, and CEO Bob Dudley, and the board of directors, if at all possible, need to get the dividend reinstated asap.
Pressure Rising to Restore BP's (NYSE:BP) Dividend
BP (NYSE:BP) CEO Bob Dudley is under increasing pressure to restore the dividend of BP, as rivals increase their margin of growth over the oil giant.
This of course must include the increase of the share price of BP in the aftermath of the Gulf oil spill, and the remaining uncertainties as to the level of liability BP will face.
The major unknown continues to be whether BP will be designated as being grossly negligent in the circumstances. At stake is billions in liability.
One major reason for the pressure to restore the dividend is to call the bluff of the company at to their confidence going forward. A dividend is one of those elements confirming the confidence of management concerning the future of a company.
If the dividend isn't restored, shareholders will probably flee the company, opening them up to being taken over, as some rumors have already been circulating about.
This of course must include the increase of the share price of BP in the aftermath of the Gulf oil spill, and the remaining uncertainties as to the level of liability BP will face.
The major unknown continues to be whether BP will be designated as being grossly negligent in the circumstances. At stake is billions in liability.
One major reason for the pressure to restore the dividend is to call the bluff of the company at to their confidence going forward. A dividend is one of those elements confirming the confidence of management concerning the future of a company.
If the dividend isn't restored, shareholders will probably flee the company, opening them up to being taken over, as some rumors have already been circulating about.
Thursday, October 7, 2010
ConocoPhillips' (NYSE:COP) Board Declares Quarterly Dividend of $0.55
The board of directors of ConocoPhillips (NYSE:COP) announced Wednesday they've declared a quarterly dividend of $0.55 a share for its shareholders, an annualized return of $2.20 a share.
For shareholders of record at the close of business on on October 29, 2010, the dividend will be payable on December 1, 2010. October 27, 2010 is the ex-dividend date.
The dividend has a 3.7 percent yield.
Conoco closed Wednesday at $59.70, gaining $0.91, or 1.55 percent.
For shareholders of record at the close of business on on October 29, 2010, the dividend will be payable on December 1, 2010. October 27, 2010 is the ex-dividend date.
The dividend has a 3.7 percent yield.
Conoco closed Wednesday at $59.70, gaining $0.91, or 1.55 percent.
Wednesday, September 15, 2010
BP (NYSE:BP) Dividend Wasn't Dropped because of US Influence Says Hayward
In what may of been the cause of the most intense strain between the Obama administration and the UK during the BP oil spill - the dropping of the dividend - outgoing CEO Tony Hayward was pressed by UK lawmakers if the decision to suspend the dividend came because of pressure from the U.S.
Hayward said that wasn't the case, saying the “decision to suspend the dividend was taken by the board,” adding it was “taken in the interest of preserving the financial strength of BP and in the interests of shareholders.”
It caused an outcry by shareholder in the UK, whose holdings in BP were the largest in relationship to their pensions. Just about as many in the U.S. also counted on the share value and dividends in BP, which resulted in lawsuits from some U.S. pensions.
Committee Chairman Tim Yeo said before the hearing that he wanted to find out if there was more political risk by continuing operations in the U.S. He added in a phone interview yesterday that the U.S. had partaken in a "bit of a witch hunt" toward the oil giant.
Hayward said that wasn't the case, saying the “decision to suspend the dividend was taken by the board,” adding it was “taken in the interest of preserving the financial strength of BP and in the interests of shareholders.”
It caused an outcry by shareholder in the UK, whose holdings in BP were the largest in relationship to their pensions. Just about as many in the U.S. also counted on the share value and dividends in BP, which resulted in lawsuits from some U.S. pensions.
Committee Chairman Tim Yeo said before the hearing that he wanted to find out if there was more political risk by continuing operations in the U.S. He added in a phone interview yesterday that the U.S. had partaken in a "bit of a witch hunt" toward the oil giant.
Thursday, August 5, 2010
Murphy Oil (NYSE:MUR) Raises Dividend Eye-Popping 10 Percent
In what may point to a solid earnings report, Murphy Oil (NYSE:MUR) today raised its quarterly dividend 10 percent, to 27.5 cents a share. Annually that translates to $1.10 a share.
Shareholders of record as of August 16 will be paid the dividend on September 1, said Murphy.
Murphy, which recently said they're divesting of the refinery assets, along with 457 gas stations located in Britain, cited solid cash flow and rising production as the reasons behind the dividend boost.
Right before close, Murphy was at $56.91, a gain of $1.16, or 2.08 percent, as of 3:53 PM EDT.
Shareholders of record as of August 16 will be paid the dividend on September 1, said Murphy.
Murphy, which recently said they're divesting of the refinery assets, along with 457 gas stations located in Britain, cited solid cash flow and rising production as the reasons behind the dividend boost.
Right before close, Murphy was at $56.91, a gain of $1.16, or 2.08 percent, as of 3:53 PM EDT.
Wednesday, August 4, 2010
Anadarko (NYSE:APC) Board Declares Quarterly Cash Dividend
On the heels of their quarterly earnings report, the Board of Directors of Anadarko Petroleum Corporation (NYSE:APC) declared a quarterly cash dividend.
Dividends on the outstanding common stock, will be for shareholders of record at the close of business on September 8, 2010, and payable on September 22, 2010.
The dividend paid will be 9 cents a share.
Taking into account the number of outstanding shares in the company, Anadarko will pay out about $44.9 million in dividends.
Dividends on the outstanding common stock, will be for shareholders of record at the close of business on September 8, 2010, and payable on September 22, 2010.
The dividend paid will be 9 cents a share.
Taking into account the number of outstanding shares in the company, Anadarko will pay out about $44.9 million in dividends.
Wednesday, June 16, 2010
BP (NYSE:BP) Cancels Dividend Through Third Quarter
BP (NYSE:BP) announced it has canceled a dividend due next month, and won't schedule a dividend payment for the second and third quarter.
The dividend due on June 21 would have had the company pay out $2.6 billion.
There has been a lot of pressure from Obama to have BP withhold a dividend until more data is available as to the costs of the Gulf oil spill.
BP also agreed to place $20 billion into a fund for those affected by the oil spill to be paid out over a period of time.
The dividend due on June 21 would have had the company pay out $2.6 billion.
There has been a lot of pressure from Obama to have BP withhold a dividend until more data is available as to the costs of the Gulf oil spill.
BP also agreed to place $20 billion into a fund for those affected by the oil spill to be paid out over a period of time.
Monday, June 14, 2010
BP (NYSE:BP) Stock Prices Drop Again
There seems to be no relief as BP's (NYSE:BP) stock prices plummeted again. Investors remain leery and anxious as they are waiting to see what BP's move of weather or not they will agree to pay and honor its second quarter dividend payout. BP refused to comment on dividend speculation until they finished talking with shareholders.
BP's stock prices dropped another 9.3 percent, bringing it to 355.5 pence. All the while, President Obama has been putting pressure on BP to drop dividend payments to ensure that there are funds set aside for future oil cleanup and oil containment efforts. Also to make sure there is enough to pay for compensation to U.S. citizens.
Jonathan Jackson, head of equities at London based Killik & Co. said, "the call from the U.S. Administration for a third party administered fund to meet the claims of victims of the spill appears to be an attempt to show the U.S. public that the government is doing something. As a political compromise, we would expect BP to take this request."
BP's stock prices dropped another 9.3 percent, bringing it to 355.5 pence. All the while, President Obama has been putting pressure on BP to drop dividend payments to ensure that there are funds set aside for future oil cleanup and oil containment efforts. Also to make sure there is enough to pay for compensation to U.S. citizens.
Jonathan Jackson, head of equities at London based Killik & Co. said, "the call from the U.S. Administration for a third party administered fund to meet the claims of victims of the spill appears to be an attempt to show the U.S. public that the government is doing something. As a political compromise, we would expect BP to take this request."
Tuesday, June 8, 2010
BP (NYSE:BP) Will Pay Dividend
For holders of American depositary shares of BP (NYSE:BP), the company announced they will receive a dividend for the quarter, which had had political pressure exerted to keep that from happening.
BP said in a regulatory filing that they'll award shareholders with a dividend of 84 cents a share for the quarter, payable to shareholders of record as of May 7, and payable on June 21.
The dividend had been approved by the BP board on April 27.
BP share price in New York was at $34.95, down $1.81, or 4.92 percent as of 1:05 PM EDT.
BP said in a regulatory filing that they'll award shareholders with a dividend of 84 cents a share for the quarter, payable to shareholders of record as of May 7, and payable on June 21.
The dividend had been approved by the BP board on April 27.
BP share price in New York was at $34.95, down $1.81, or 4.92 percent as of 1:05 PM EDT.
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