BP share price: I’d buy this FTSE 100 share for BIG dividends as the oil giant cuts payouts

first_img Our 6 ‘Best Buys Now’ Shares Royston Wild | Tuesday, 4th August, 2020 | More on: BP Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Enter Your Email Address Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images. center_img Click here to claim your free copy of this special investing report now! 2020 has proved a dangerous time to buy into some of the biggest UK shares like Royal Dutch Shell and BP (LSE: BP) I’ve long argued that buying BP shares is too risky, in spite of its mighty dividend yields. And today the oilie proved exactly why.The FTSE 100 colossus decided not to cut dividends earlier this year in response to the crashing Brent price. But on Tuesday, BP was forced to follow Shell’s April decision and hack back the shareholder reward. It will be cutting the second quarter dividend to 5.25 US cents per share, it said, halving it from the 10.5 cents it shelled out a year ago.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The move’s been prompted by some truly shocking financials that showed BP swung to an underlying replacement cost loss of $6.7bn in the second quarter. This compares with a profit of $2.8bn printed in the same 2019 quarter. The reason for the deterioration? BP booked a whopping $6.5bn worth of write-downs as it marked down its oil and gas forecasts.BP is the latest dividend slasherThis is the first time that BP has cut dividends for around a decade and is the latest in a flow of dividend cuts that owners of UK shares have had to stomach. More than half of all FTSE 100 companies have either cut, suspended or axed their dividends in 2020. And more could be coming as the economic impact of the Covid-19 pandemic rolls on.I’m certainly not expecting BP to re-emerge as a generous dividend payer any time soon. The oilie said today that it would “pivot” from being an international oil producer to an integrated energy company. Still, the business of drawing oil from the ground will remain BP’s bread and butter for a long, long time yet. And consequently it faces prolonged earnings pressure as the economic downturn dents energy demand; massive fossil fuel investment in major-producing nations drives new supply; and growing stacks of ‘green’ legislation damage oil and gas consumption.I’d still buy UK shares for big dividendsSo 2020 has been an awful year for dividend investors. But it’s not to say that there are no longer any top-quality income UK shares to buy right now. You just need to know where to look.For instance, I’d be very happy to buy shares in National Grid right now. This FTSE 100 energy giant has a monopoly on keeping Britain’s electricity grid up and running. And it’s a role that provides exceptional earnings visibility, economic downturn or not. National Grid isn’t likely to cut dividends any time soon and this means that its 5.5% is rock solid.So don’t be spooked by BP’s groundshaking dividend cut. There are still plenty of brilliant dividend stocks like National Grid that can help you make stunning shareholder returns now and in the future. And The Motley Fool’s massive library of articles and reports can help you find them and maybe get rich in the process. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. BP share price: I’d buy this FTSE 100 share for BIG dividends as the oil giant cuts payouts 5 Stocks For Trying To Build Wealth After 50 See all posts by Royston Wildlast_img

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