BP: Moving In The Right Direction

About: BP p.l.c. (BP)
by: Mark Dockray
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Mark Dockray
Long only, long-term horizon, portfolio strategy, growth at reasonable price

BP stock has recorded a dreadful decade of returns, largely driven by the cost of the 2010 Gulf of Mexico oil spill and the subsequent oil price crash.

Though debt is a little on the high side, operationally, the situation continues to improve with cash flow at current commodity prices comfortably covering CapEx and the dividend.

With a 6.5% dividend yield, plus the real prospect of renewed growth on top of that, the outlook for the stock is also much healthier.

It has been a tough decade for oil major BP (NYSE:BP). The company has had to contend with the ongoing, albeit self-inflicted, damage caused by the Gulf of Mexico oil spill back in