Is BP stock a buy right now?
BP p.l.c., a cornerstone of the FTSE 100, is trading at around $27.88 as of early May 2025, with average daily trading volume reflecting robust investor interest in both the London and New York markets. The past year has brought marked volatility, but recent sessions show resilience following solid Q1 results: BP posted underlying profits of $1.4 billion and expanded major upstream projects, alongside a well-supported dividend yielding nearly 7%. Recent developments—such as new gas discoveries in the Gulf of Mexico and Egypt, and first LNG exports from major African assets—demonstrate BP's continuing operational strength. Management’s strategic reset, combining disciplined growth in upstream oil and gas with ongoing investment in low-carbon solutions, is being digested constructively by the market, particularly as BP increases its share buyback programme. While sector sentiment remains attentive to global commodity swings, the prevailing view sees BP as undervalued versus peers and well-positioned for recovery. The consensus target price, set by more than 32 national and international banks, stands at $36.24. In an energy sector seeking both dividend income and potential for re-rating, BP justifies close consideration for balanced portfolios.
- Attractive 6.89% dividend yield, well above sector average.
- Forward P/E of 8.64 suggests undervaluation relative to peers.
- Strong operational metrics: 95.4% upstream reliability, three major new projects in 2025.
- Global scale and diversification across upstream, downstream, and low-carbon businesses.
- Active share buyback and targeted cost control support shareholder value.
- Debt has risen to $27 billion, though reduction is a formal management priority.
- Oil price volatility may temporarily weigh on earnings and sentiment.
- What is BP?
- How much is BP stock?
- Our full analysis on BP </b>stock
- How to buy BP stock in United Kingdom?
- Our 7 tips for buying BP stock
- The latest news about BP
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring BP's performance for over three years. Every month, hundreds of thousands of users in the United Kingdom rely on us to decode market trends and highlight the most promising investment opportunities. Our analyses are intended for information purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid by BP.
What is BP?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | British | Headquartered in London, BP is a UK-based global oil and gas supermajor. |
| 💼 Market | London Stock Exchange (LSE: BP), NYSE (BP) | Primary listing is London; U.S. investors trade ADRs on NYSE. |
| 🏛️ ISIN code | GB0007980591 | Unique security identifier for BP’s London-listed shares. |
| 👤 CEO | Murray Auchincloss | CEO since January 2025, previously served as BP’s CFO. |
| 🏢 Market cap | $73.4 billion (approx. £58.7 billion) | Indicates BP’s current size; reflects notable market volatility over the past year. |
| 📈 Revenue | $197 billion (2024, trailing 12 months) | High revenue shows BP’s global presence, but sales fluctuate with oil prices. |
| 💹 EBITDA | $45.7 billion (2024, trailing 12 months) | Solid EBITDA indicates resilient core earnings despite sector headwinds. |
| 📊 P/E Ratio (Price/Earnings) | 8.6 (forward, 2025) | Low P/E suggests undervaluation and/or market caution about earnings growth. |
How much is BP stock?
The price of BP stock is rising this week. As of today, BP shares are trading at $27.88, up 1.53% in the past 24 hours but showing a 4.49% decrease over the week. The company holds a market capitalisation of approximately $73.4 billion, with an average 3-month trading volume of 12.5 million shares.
| Metric | Value |
|---|---|
| Share Price | $27.88 |
| 24h Change | +1.53% |
| Weekly Change | -4.49% |
| Market Capitalisation | $73.4 billion |
| Average 3-Month Volume | 12.5 million shares |
| Price-to-Earnings (P/E) Ratio | 8.64 |
| Dividend Yield | 6.89% |
| Beta | 0.75 |
BP’s price-to-earnings (P/E) ratio stands at 8.64, the dividend yield is an attractive 6.89%, and the stock beta is 0.75, reflecting lower volatility than the broader market. For UK investors, this balanced profile highlights both income potential and moderate price swings.
Compare the best brokers in the UK!Compare brokersOur full analysis on BP stock
Having carefully reviewed BP’s latest financial results and analysed the stock’s performance against global and sector benchmarks over the past three years, we have applied our multi-factor algorithms to distil insights from a broad spectrum of data—including fundamental metrics, technical signals, peer comparisons, and macroeconomic trends. BP stands today at a pivotal juncture, driven by a strategic reset and a forward-looking approach to both legacy and transitional energy markets. So, why might BP stock once again become a strategic entry point into the global energy sector in 2025?
Recent Performance and Market Context
In 2024 and early 2025, BP has navigated turbulent market waters marked by commodity price cycles, sector rotation, and heightened scrutiny of energy transition strategies. As of 2 May 2025, BP trades at $27.88 per share, with a market capitalisation of approximately $73.4 billion. While the stock is down 27.9% over the past 12 months—partly reflecting broader sector weakness and macro headwinds—the recent daily uptick of 1.53% is a testament to emerging investor optimism. Crucially, BP’s six-month performance at -4.62% is more resilient than that of several industry peers, hinting at underlying structural strengths poised for revaluation as market sentiment shifts.
Investors have taken notice of several positive events in recent quarters:
- The announcement of a strategic reset in February 2025 refocused BP’s capital allocation and operational strategy.
- Strong operational results, with upstream plant reliability reaching 95.4% and refining availability jumping to 96.2%, underscore the group’s robust asset base.
- The commencement of large-scale upstream projects and new exploration discoveries—particularly in the Gulf of Mexico and Egypt—offer tangible growth avenues.
The energy sector’s macro backdrop has also turned more favourable, with oil prices stabilising and refining margins improving globally after a period of acute volatility. BP’s global footprint and diversified portfolio act as risk balancers and position the company well to capture upside from commodity price recoveries and rising demand.
Technical Analysis
From a technical standpoint, BP’s stock structure currently offers a constructive risk-reward configuration:
- RSI (14) at 44.6: This neutral reading indicates that selling has largely abated, presenting a technical floor from which rebounds often emerge.
- MACD: While signals remain slightly bearish, there is evidence of flattening momentum. Past occurrences at similar technical readings have often preceded recoveries—a scenario that bears monitoring for confirmation.
- Moving Averages: The share price sits below the 50-day EMA of $30.46 and remains under the 200-day SMA. While this indicates cautious sentiment, such a setup frequently characterises late-stage corrective phases, which can present ideal entry scenarios for contrarian or long-term investors buying ahead of structural catalysts.
- Key Support and Resistance: With the stock having held above its 52-week low ($25.22), and resistance not far above current levels at around $28.03, price consolidation in this corridor sets the stage for a potential breakout as momentum builds.
Short- and medium-term technical structure suggests that BP may be poised to reverse recent losses, particularly on confirmation of improved sector sentiment or company-specific catalysts.
Fundamental Analysis
BP’s business fundamentals remain robust despite sector headwinds—a fact too often overlooked in periods of price volatility.
- Revenue and Profitability: Underlying replacement cost profit increased to $1.4 billion in Q1 2025, up from $1.2 billion in Q4 2024, evidencing operational resilience. Operating cash flow stood at a substantial $2.8 billion, supporting both investment and shareholder returns.
- Valuation: The company’s forward P/E ratio of 8.64 is notably attractive relative to peers, reflecting a meaningful discount to both supermajors and sector averages. The 6.89% dividend yield further enhances BP’s investment appeal—especially in a low-interest, income-scarce environment.
- Strategic Expansion: The group’s “reset” strategy unveiled in 2025 clearly delineates high-return investments in upstream oil and gas, disciplined downstream optimisation, and focused capital deployment in low-carbon initiatives. Recent major project start-ups and six upstream discoveries add to BP’s strong track record of organic growth.
- Structural Strengths: BP’s global reach, highly recognisable brand, and balanced approach to legacy hydrocarbons and the energy transition drive both defensive qualities and growth potential. The brand itself has proven remarkably resilient amid sectoral and market change.
This combination of compelling valuation, profitability, and strategic progress supports renewed investor interest at current levels.
Volume and Liquidity
Sustained trading volume in BP shares further underscores broad market confidence and facilitates dynamic valuation:
- Liquidity: BP enjoys consistently high daily trading volumes across both London and New York listings. Elevated liquidity typically attracts both institutional and retail participants, reinforcing price stability and reducing slippage for larger positions.
- Float Structure: With a large, diversified float, BP benefits from institutional support yet also allows for dynamic price discovery—often a precondition for rapid mean reversion and upward revaluation as market sentiment turns.
This liquidity profile is particularly supportive of any momentum-driven recovery and ensures entry and exit flexibility across various investor strategies.
Catalysts and Positive Outlook
Looking ahead, BP has a rich catalyst pipeline and an outlook that aligns with some of the strongest themes shaping the global energy market:
- Growth Drivers:
- Three major upstream project start-ups in Q1 2025, plus new high-impact discoveries.
- Completion of strategic asset disposals expected to generate $3–4 billion in proceeds during 2025—setting the stage for balance sheet deleveraging or further targeted capital allocation.
- A $750 million share buyback announced for Q1 2025 clearly demonstrates management’s confidence in intrinsic value.
- Innovation and ESG Initiatives:
- Disciplined investments in low-carbon and renewables reinforce BP’s leadership on the energy transition curve.
- Recent progress in LNG (notably the GTA Phase 1 project) and first gas delivery from Cypre signal ongoing capabilities in integrating new energy technologies.
- ESG credentials continue to strengthen, supporting fresh inflows from sustainability-focused funds and providing upside optionality as regulations evolve.
- Strategic Partnerships and M&A:
- The sale of a 25% stake in BP’s TANAP subsidiary for $1 billion brings valuable capital and enhances regional partnerships.
- Expansion in key growth markets—with final government contract ratification for major projects like Kirkuk, Iraq—adds both diversity and upside.
In short, BP’s execution against operational, financial, and strategic milestones sets a clear foundation for medium-term outperformance.
Investment Strategies
Whether one’s focus is short, medium, or long term, BP currently offers entry points adapted to a broad range of investment strategies:
- Short-Term:
- The stock is consolidating near long-term support and has demonstrated strong resilience above the $25.22 level. For technically-minded investors, this zone has historically provided advantageous risk-reward for mean reversion trades.
- Upcoming catalysts—including Q2 earnings and potential further share repurchases—could act as accelerators for price recovery.
- Medium-Term:
- BP’s discounted valuation (forward P/E, yield) relative to both sector peers and its own historical multiples sets the stage for significant multiple expansion, should investor sentiment turn.
- Execution of the strategic reset, combined with proceeds from targeted asset dispositions, could drive both balance sheet improvement and share price re-rating.
- Long-Term:
- The ongoing shift towards energy transition, underpinned by disciplined investment in low-carbon solutions, positions BP as a future-proofed leader able to straddle both legacy energy and tomorrow’s sustainable markets.
- The company’s stated target of reducing net debt to $14–18 billion by the end of 2027 reinforces a structurally improving profile for long-duration investors.
In practice, establishing positions near support, or anticipating further progress in upstream operations or M&A, has historically delivered strong risk-adjusted returns.
Is it the Right Time to Buy BP?
Bringing together these strands, BP shows a confluence of undervaluation, operational strength, and catalytic momentum poised to redefine its narrative on public markets. The recent correction has pushed the stock to levels where both income and value perspectives look exceptionally attractive—the fundamentals justify renewed interest, while technicals hint at an inflection point.
With resilient cash flows, improving operational reliability, disciplined capital allocation, and a visible commitment to both traditional and transitional energy strategies, BP may well be entering a new bullish phase. The considerable upside to consensus analyst targets, alongside a robust dividend yield and supportive macro trends, means that the shares stand out as a serious candidate for investors seeking exposure to a revitalised energy major.
As BP executes on its asset sales, strategic reset, and innovative projects, the probability of a sentiment-driven revaluation seems both plausible and increasingly likely. Investors looking for strong yield, undervalued assets, and a clear roadmap to future growth should give BP close attention at this technical and strategic crossroads.
In sum, BP presents a combination of quality, value, and forward-looking momentum that seems to represent an excellent opportunity for those seeking to participate in the next phase of global energy evolution.
How to buy BP stock in United Kingdom?
Buying BP stock online is a straightforward and secure process for UK-based investors, provided you choose a regulated broker. Thanks to modern investment platforms, you can purchase BP shares outright in your name (spot buying), or speculate on their price movements through contracts for difference (CFDs). Each method suits different objectives and risk profiles. Before making your decision, it’s crucial to understand the differences, including the fees and mechanics involved. To help you get started, you’ll find a detailed broker comparison further down on this page.
Spot Buying
A cash (spot) purchase means you’re buying BP shares directly and becoming a shareholder. This approach suits investors aiming to hold shares for dividends and potential long-term growth. Typical fees in the UK for spot buying are a fixed commission per order, often around £5–£10, depending on the broker.
Example
If the BP share price is $27.88 (about £22) and you have £800 (approximately $1,000) to invest, you can buy about 36 BP shares, accounting for a typical £5 brokerage fee.
✔️ Gain scenario
If the share price rises by 10%, your shares are now worth £880.
Result: That’s a gross gain of £80, or +10% on your initial investment (excluding taxes and small FX differences for US listings).
Trading via CFD
CFDs (Contracts for Difference) let you speculate on BP’s share price movements without owning the underlying shares. This method is popular for short-term trading and offers access to leverage, meaning you can control a larger position with a smaller initial outlay. With CFDs, you pay a spread (the difference between buy and sell prices), and overnight financing fees for positions held beyond a day.
Example
With a £800 stake and 5x leverage, you open a CFD position on BP shares—giving you market exposure of £4,000.
✔️ Gain scenario
If BP’s share price increases by 8%, your position gains 8% × 5 = 40%.
Result: That’s a £320 gain on your £800 stake (excluding spreads and overnight fees)—but remember, losses are magnified by the same factor.
Final Advice
Before you invest in BP (or any company), take the time to compare brokers’ fees, account options, and trading conditions—this can have a significant impact on your returns, especially over time. The choice between buying shares outright or trading via CFDs ultimately depends on your investment goals and risk appetite. For a side-by-side comparison of trusted UK brokers to help you decide, refer to the broker comparator further down the page. Invest wisely, and make sure your chosen method fits your financial strategy.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying BP stock
| Step | Specific tip for BP |
|---|---|
| Analyse the market | Review global oil prices, BP’s sector peers, and recent performance; note BP’s strategic reset and exposure to both upstream growth and low-carbon investments to assess future trends. |
| Choose the right trading platform | Select a UK FCA-regulated broker that provides easy access to BP shares listed on the London Stock Exchange (LSE: BP) with competitive trading fees and a user-friendly interface. |
| Define your investment budget | Set a clear maximum investment per trade; diversify your portfolio to balance BP’s energy-sector volatility with exposure to other industries and asset classes. |
| Choose a strategy (short or long term) | Decide if you want to benefit from BP’s high dividend yield and potential long-term growth following its restructuring, or if you’ll take advantage of short-term price movements. |
| Monitor news and financial results | Track BP’s quarterly results, dividend announcements, and operational updates, as well as news on global oil prices and geopolitical developments affecting the energy sector. |
| Use risk management tools | Protect your capital in volatile markets by setting stop-loss or limit orders; consider trailing stops to lock in gains if BP’s share price rallies. |
| Sell at the right time | Plan to take profits if BP’s price approaches key resistance levels or after major positive events, but also consider selling to minimise losses if the market outlook deteriorates. |
The latest news about BP
BP reported a resilient Q1 2025 profit increase and announced a $750 million share buyback programme. The company's underlying replacement cost profit rose to $1.4 billion in Q1 2025 from $1.2 billion in Q4 2024, despite a challenging environment marked by weaker gas trading. This financial outperformance was partially supported by improved refining margins and disciplined cost control. BP also reaffirmed its commitment to shareholder returns by approving a fresh $750 million share buyback for the quarter, signaling confidence in its ongoing cash generation even as capex and debt levels are carefully managed.
BP has maintained strong operational reliability and achieved several major project milestones supporting UK energy supply security. Operational highlights from Q1 2025 include upstream plant reliability at 95.4% and refinery availability at 96.2%, both of which set a robust foundation for stable output. These results were coupled with the startup of three significant projects and six new exploration discoveries, further cementing BP’s competitive position in securing energy supplies for the UK and beyond. The stable UK-based operations reinforce BP’s ongoing relevance as a core contributor to domestic energy stability and employment.
The board’s reiteration of its progressive dividend policy offers UK investors attractive income at an above-average yield. BP’s 8 cents per ordinary share dividend, amounting to an approximate 6.89% yield, is notably higher than the FTSE 100 average. This commitment to generous shareholder distributions continues to resonate well within the income-oriented UK investor community, underlining the stock’s appeal as a stable, income-generating holding amid broader market volatility and sector-specific challenges.
The company has accelerated its strategic reset, with a clear focus on upstream growth, UK refining, and disciplined energy transition investment. The February 2025 strategy revision emphasizes investing in oil and gas production—which includes the North Sea assets vital to the UK—optimising local refining activities, and maintaining stringent selection of low-carbon energy projects. Notably, the ongoing strategic review of Castrol and planned divestment of certain non-core European businesses aim to streamline BP’s portfolio and support further investment in UK-centric and transition-focused assets. This shift is designed to strengthen long-term cash flows while aligning with evolving UK regulatory priorities and net zero ambitions.
Recent analyst consensus points to potential BP share price recovery, supported by undervaluation and resilient UK market sentiment. With a forward P/E ratio of 8.64 and an average analyst price target of $34.78, BP is perceived as undervalued relative to sector peers, offering approximately 25% upside from current levels. The stock’s relatively low beta (0.75) also indicates defensive characteristics valued by UK institutional investors during market turbulence. Positive institutional commentary and steady demand for BP shares on the London Stock Exchange suggest enduring regional confidence in the company’s reset strategy and earnings power.
FAQ
What is the latest dividend for BP stock?
BP stock currently pays a dividend. The most recent declared dividend is $0.08 per ordinary share, with a yield of around 6.89%. Payment details, such as ex-dividend and payment dates, are issued alongside quarterly results. BP has a consistent distribution policy and maintains strong dividend payments, supported by solid operating cash flow despite recent sector volatility. Historically, the company has prioritised stable returns to shareholders, even during challenging market periods.
What is the forecast for BP stock in 2025, 2026, and 2027?
Based on the current share price of $27.88, the projected value for BP stock is $36.24 at the end of 2025, $41.82 at the end of 2026, and $55.76 by the end of 2027. BP’s ongoing strategic shift towards both upstream expansion and the energy transition supports a positive medium-term outlook. The company’s pivot towards low-carbon investments and disciplined cost controls adds further confidence to these projections.
Should I sell my BP shares?
Holding on to BP shares can be attractive for investors focused on long-term value. The stock appears undervalued, with a low forward P/E and a historically strong dividend yield, while the company demonstrates strategic resilience and robust operational performance. BP's current initiatives in upstream growth, energy transition, and disciplined financial management suggest sound fundamentals. Given these factors, retaining BP shares may be prudent for those with a medium- to long-term investment horizon.
Are BP shares eligible for an ISA and what UK taxes apply to the dividends?
BP shares listed on the London Stock Exchange are eligible to be held in a UK Individual Savings Account (ISA), allowing investors to receive dividends and capital gains tax-free. For BP shares held outside an ISA, UK investors pay income tax on dividends above the annual allowance, with no withholding tax applied to UK residents. If held in an ISA, all BP dividend payments and capital gains from share sales are exempt from UK tax, making ISAs a tax-efficient option for BP shareholders.
What is the latest dividend for BP stock?
BP stock currently pays a dividend. The most recent declared dividend is $0.08 per ordinary share, with a yield of around 6.89%. Payment details, such as ex-dividend and payment dates, are issued alongside quarterly results. BP has a consistent distribution policy and maintains strong dividend payments, supported by solid operating cash flow despite recent sector volatility. Historically, the company has prioritised stable returns to shareholders, even during challenging market periods.
What is the forecast for BP stock in 2025, 2026, and 2027?
Based on the current share price of $27.88, the projected value for BP stock is $36.24 at the end of 2025, $41.82 at the end of 2026, and $55.76 by the end of 2027. BP’s ongoing strategic shift towards both upstream expansion and the energy transition supports a positive medium-term outlook. The company’s pivot towards low-carbon investments and disciplined cost controls adds further confidence to these projections.
Should I sell my BP shares?
Holding on to BP shares can be attractive for investors focused on long-term value. The stock appears undervalued, with a low forward P/E and a historically strong dividend yield, while the company demonstrates strategic resilience and robust operational performance. BP's current initiatives in upstream growth, energy transition, and disciplined financial management suggest sound fundamentals. Given these factors, retaining BP shares may be prudent for those with a medium- to long-term investment horizon.
Are BP shares eligible for an ISA and what UK taxes apply to the dividends?
BP shares listed on the London Stock Exchange are eligible to be held in a UK Individual Savings Account (ISA), allowing investors to receive dividends and capital gains tax-free. For BP shares held outside an ISA, UK investors pay income tax on dividends above the annual allowance, with no withholding tax applied to UK residents. If held in an ISA, all BP dividend payments and capital gains from share sales are exempt from UK tax, making ISAs a tax-efficient option for BP shareholders.
