Shiv Kapoor

11 More Potential Buys

What about BP. It is near an 8% yield. The company has capacity and a long displayed ability to generate large free cash flows, it can deliver 4m bpd through 2010 from existing reserves, it has pretty exciting E&P prospects, it is a leader in alternative energy, it has a re-structure in place to improve HSE and cut costs, it has a good share buy-back program, it increased or maintained its dividend every year as far back as I have looked (Feb 1999) and today it delivers a yield of 8%. Today, you can lock in a return equaling the long term market return and look upon any capital gain as a bonus and as the dividends rise in future years, your yield relative to the price you paid continues to go upwards. I am not yet constructive on energy, but BP is certainly a stock I have my eye on.