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How To Buy BP Stock

BP plc is one of the world’s major participants in the energy sector. BP supplies the energy that keeps America running and contributes to the growth of the global economy. Our guide will show you how to open a brokerage account and how to start investing in BP stock.

Quick History of BP

BP plc is a global British oil and gas corporation based in London, England. The corporation has nearly 20,000 service stations globally.

BP Energy Company is a provider of gas, electricity, and risk management services. BP is a component of the FTSE 100 Index and has its principal listing on the London Stock Exchange.

The shares of the corporation are largely traded on the London Stock Exchange, but they are also traded on the Frankfurt Stock Exchange in Germany.

In the United States, shares are exchanged in US dollars on the New York Stock Exchange as American depositary shares. BP America, Inc., headquartered in Houston, Texas, is the company’s largest subsidiary in the United States.

The Deepwater Horizon oil leak, a catastrophic industrial catastrophe, occurred on April 20, 2010. And as a result, Bob Dudley took over as CEO of the firm that year until February of 2020.

The US government temporarily barred BP from bidding for new Federal contracts in November 2012. In March 2014, the prohibition was temporarily removed.

BP spent $200 million in 2017 to purchase a 43% share in the solar energy producer Lightsource Renewable Energy.

The Good and the Bad of BP Stock

Owning stocks in a firm has various advantages but also disadvantages. Here are some of the benefits and drawbacks of holding BP stock.

Pros of Owning BP Stock 

  • BP stock historically has had one of the highest dividend yields in the energy industry.
  • With one of the market’s least expensive infrastructures, it is currently well positioned for any energy sector downturn.

Cons of Owning BP Stock 

  • BP is not in a good situation due to its high debt load and limited cash flows. In reality, its competitors have the scope and finances to be more persistent in their bids for new contracts.
  • Investors need to be aware that BP stock is known to frequently drop throughout the year for long periods of time due to fluctuating oil prices throughout the country.

Outlook for BP Stock

Oil and energy, like nearly many other sectors, have suffered as a result of the coronavirus epidemic. Many investors are now seriously considering buying low-cost oil shares, like BP, and leveraging them as the market recovers.

In the short term, the stock is in the middle of a mild rising trend. The stock is predicted to climb 7% to nearly 9% over the next three months.

During the 1st quarter of 2021, the company earned $36.49 billion and earned $1.69 per share over the last year. The company’s solid 1st quarter financial results this year allowed them to fulfill their $35 billion net debt objective.

BP expects to produce excess cash flow in the second half of the year, anticipating an oil price of roughly $45 per barrel. In the second quarter of 2021, BP will begin share buybacks, which, coupled with their robust dividend, will boost the expansion in payouts to shareholders.

5 Steps to Buy BP Stock

To buy BP stock, you must first create a brokerage account, a trading account, then deposit cash, and then start buying shares.

Step 1: Select a Brokerage

Opening a brokerage account will be beneficial to buying different types of investments, not just for buying BP stock. However, a brokerage account is required to begin investing in BP.

Consider creating a brokerage account now to be ready when the stock hits the price you are looking to purchase at.

Step 2: Open the Trading Account

After determining which brokerage is ideal for you, you must create an account with them. This account will be used to post transactions and trade stocks.

Trading accounts allow for you to have control over your own investments and will let you freely buy and sell stocks through your brokerage.

Step 3: Deposit Funds Into the Account

To acquire stocks, you must have funds available in your trading account. You’ll be able to deposit funds to buy BP shares once you’ve linked an acceptable payment method to your account.

After your account has been officially activated, you must decide how many shares of BP stock you want to buy.

Step 4: Search for the BP Ticker Symbol (BP)

You can search for stocks by either looking up the ticker symbol or company name. Find BP stock using the ticker symbol (BP) or the name B.

Be sure to conduct some research on your own, before deciding if BP is a good investment for you.

Step 5: Purchase BP Stock

Brokers will have a “deal ticket” at the bottom of each page where you may place your order. You will enter the symbol and the number of shares you wish to purchase on the broker’s order form.

You can buy as many shares as you like with a market order, or you may use a limit order to defer the purchase until the stock reaches a particular price.

Is BP a Good Buy?

Over the last decade, BP has faced various obstacles and is actively shifting its strategic vision. BP stock is not an outstanding investment option based on its profits, financial prospects, and dividend profile.

But, BP could be a solid buy for those looking for a long-term investment in a diversified energy corporation. The corporation plans to concentrate on its most profitable oil and gas projects.

BP is undergoing a huge corporate transformation, operating at a rapid pace, and on a somewhat shaky financial base. Most long-term investors will probably want to sit tight until BP is considerably further advanced in its transition before following suit.

If you would like to learn more information about how to successfully invest in the stock market, then you should consider contacting a financial advisor.