Bp Share Discussion Threads

[waldron] 30/5/2017 13:02

Shell and BP dividend ‘looks more sustainable’, says top income investor
News
30 May 2017

Simon Gergel, who runs the Merchants Investment Trust, which has a yield of 4.9 per cent, has revealed the reason why he remains keen on the shares of oil giants BP and Shell.

COMMENT

Gergel: Shell and BP dividends ‘look more sustainable’

Gergel sees dividend potential in BP shares
David Thorpe
David Thorpe

Shell is the largest investment in the £702 million Merchants Investment Trust.

Gergel commented, ‘the big oil companies have cut their capital expenditure to the extent that they can now pay the dividend from the cash they generate and also can pay for the investment they make. The dividend is more sustainable now that it has been for some time, and it may be that we get a higher oil price from here as well, offering a further boost to earnings.’

In contrast he is rather less keen on the investment case for the UK housebuilders, commenting, ‘whilst the companies themselves look to be trading on cheap valuations, they are trading at a premium to the value of their net assets. Its not that we are particularly negative on the housebuilders as a sector, but the shares have gone up a lot.

He added that he is ‘relatively optimistic’ about the outlook for the UK consumer, remarking that, ‘unemployment is low, and the living wage increase will put more money in people’s pockets.’

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Amongst the stocks he likes with exposure to the UK consumer are Greene King, a pub company of which he commented, ‘they are showing real earnings growth since the acquisition of Spirit (a rival pub company).’

He has relatively less exposure to the mining sector than does his peer group as a whole, but does have investments in BHP Billiton and Antofagasta, both mining companies that have performed well of late.

Read more: JP Morgan: It’s unlikely UK interest rates will rise in the next year

The Merchants Investment Trust has returned 29 per cent over the past year, compared with 22 per cent for the average trust in the AIC UK Equity Income sector in the same time period. It trades at a discount to net assets of 4.9 per cent.

The largest investments in the trust are Glaxosmithkline and Royal Dutch Shell.

[alphorn] 30/5/2017 09:53

Steve - used to that! Visiting a bar near Belarus they had AKs etc hanging up everywhere. They had more guns than a shooting club.

[steve73] 30/5/2017 04:59

I remember a Swiss skiing holiday about 30 years ago.. We were in a small local bar well away from the big tourist areas when a group of Swiss police came in about 11pm, hung their guns on the coat rack, and proceeded to get as drunk as everyone else.
It felt rather awkward "rifling" through their guns so we could retrieve our coats as we left a few hours later......

[ianood] 26/5/2017 19:12

They have been for 50 years + if I remember correctly.

[alphorn] 26/5/2017 08:41

Armed police are the norm in Switzerland.

[hellscream] 26/5/2017 05:22

just seen armed police walking the streets for the first time in my life... is this the new normal?

well who of guessed importing the 3rd world, this was to happen. well atleast the super rich got more coin. not only do migrants take your money they also kill you... , feel sorry for your kids.

[lollipop3] 25/5/2017 19:28

Down today,cos of OPEC meeting?

[hellscream] 25/5/2017 17:16

bp will be paying $5.5b in compensation next year.. so you wont see +£5..

[hellscream] 25/5/2017 16:44

going back to 450 like its done the past 7 years, just collect the divi. still got 2 more years of paying back yet.

[karateboy] 24/5/2017 17:32

5 pounds here we come! What do you think TDD?

[hellscream] 23/5/2017 04:44

love freedom of movement, nothing but positives from it.

[neilyb675] 22/5/2017 21:17

On 2 May 2017 the Directors of BP p.l.c. announced that the interim dividend for the first quarter 2017 would be US$0.10 per ordinary share (US$0.60 per ADS). This interim dividend is to be paid on 23 June 2017

[leafysuburb] 22/5/2017 18:40

Still nudging up nicely

[sirhedgealot] 22/5/2017 16:10

Should have held hehe

[blueball] 21/5/2017 07:48

Stay long.

[badtime] 20/5/2017 14:35

Karate u need to have held at close of business on May 10th

[karateboy] 19/5/2017 09:17

Shares are doing nicely.

[karateboy] 18/5/2017 21:49

So if you bought shares on or before 11/May you are entitled to divi. Is that correct? On 12/May shares dropped a bit corresponding to ex divi date.

[sicker] 18/5/2017 19:33

karateboy, where did you check your dates ?
From the BP Financial calendar:-
11 May 2017
Ex-dividend
First quarter ex-dividend for ordinary shares
12 May 2017
Record date
First quarter record date

[pineapple1] 18/5/2017 12:38

High ,but not monster volume on the break from the recent PFC high scared me off. They generally end up going lower. Your BT is an example from the Italian accounting scandal.Big volume break lower. Little recovery.
CNA is my recovery play. The price cap will be a damp sqib. 6% yield to boot...
Plus a goldman sell rec means they are on the other side...
imho...But wtfdik too........lol

I sold my BP yesterday . Anyone got any new ideas for a retrace number to take a look at. Still above the 9day EMA so i hope i,ve not left to much on the table....

[penycae] 18/5/2017 10:54

Morning bracke!
May well be a bit more downside in PFC, but as the great man says "be greedy when others are fearful". An interview under caution by the SFO is like being mugged by a sheep. PFC has cleverly hedged its position by previously appointing main line accountants to look over the allegations. They found nothing. Assuming they were given a free hand, PFC is in an interesting position against their indemnity insurers. If something was held back, and is unearthed, then worse case scenario is a fine. Same applies to BT. Both good recovery plays, but wtfdik?
Underwater at the moment, but the deeds to the farm are still under the bed.