The oil stocks have all made a nice bullish rise in the past year. Part of the reason was the election of Donald Trump and adding the previously CEO of Exxon to his cabinet staff. This gives investors a more bullish outlet on the oil sector and their oil investments.
This also made huge gains in Exxon Mobile (XOM) and Chevron (CVX) stock price in the past few months. British Petroleum (BP) also went up but it didn’t have the same appreciation gain. BP also still wields at 6.7% dividend at the current stock price. Exxon Mobile and Chevron hold less than a 4% dividend at their current stock price.
You should remember that British Petroleum has finalized the settlement with the government. They have already sold the necessary assets to make the payments. They are actually quite conservative compared to the other oil companies which I believe is a good thing as it is challenging to forsee the oil prices going forward.
You might have remembered an earlier blog post that I said BP follows a Plan B strategy. This means the company believes that oil prices will remain stagnant so they are strategizing their oil investments for low oil prices. This is counter to Exxon and Chevron which are building their portfolio to account for higher oil prices.
With a nice dividend and a undervalued outlook, British Petroleum (BP) should be on your radar for a nice oil company. I do believe Exxon Mobile and Chevron (CVX) are a bit overvalued at their current price as well. I am a holder in Chevron but I will be looking for a time in the immediate future to move some of those holdings to BP where I see much better chance at appreciation in the future.