Could BP shares be the investment of the decade for me?

first_img Our 6 ‘Best Buys Now’ Shares Our 5 Top Shares for the New “Green Industrial Revolution” Could BP shares be the investment of the decade for me? 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. Manika Premsingh | Wednesday, 2nd June, 2021 | More on: BP It was released in November 2020, and make no mistake:It’s happening.The UK Government’s 10-point plan for a new “Green Industrial Revolution.”PriceWaterhouse Coopers believes this trend will cost £400billion……That’s just here in Britain over the next 10 years.Worldwide, the Green Industrial Revolution could be worth TRILLIONS.It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Manika Premsingh owns shares of BP. 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.center_img See all posts by Manika Premsingh Image source: Getty Images. 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. Enter Your Email Address The future of oil biggie BP (LSE: BP) hangs in balance. Oil and gas demand is expected to lessen over time as green energy sources become dominant. So BP has a plan. It will pivot towards renewable energy now. BP’s big pivotThe plan is already at work. Yesterday, BP said that it is acquiring solar projects in the US. BP sees this as a significant step forward in achieving its clean energy target. It also sees at least 8% to 10% returns from these projects. This follows the company’s foray into green projects in European countries like Greece and Portugal, as well as in Australia. It has also invested in offshore wind energy projects. 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…BP aims to reduce its oil and gas production by 40% by 2030. To me this sounds like a definite step forward, especially at a time when there is such a heavy policy focus on green energy. What’s next for the share priceI reckon it will also be good for the BP share price, which can do with a lift. It has gone nowhere in the last 10 years. Even after its post-pandemic recovery, the BP share price is way lower than the 500p levels at which it started in 2020. Besides the question mark on its future, BP’s dividend cut last year has been a possible reason for this. If a share’s price is not growing, I want decent dividends. But even today, BP’s dividend yield is at 4.7%. This does not compare favourably with FTSE 100 utilities like SSE or miners like Rio Tinto, which offer a higher yield and have also shown share price increases. I reckon that if BP’s dividend yield were to become more competitive, it would be more attractive. I also think that the BP share price was affected by the lockdowns in the form of lower travel demand, which showed up in its results. The numbers have improved significantly recently as oil prices rose on vaccine development. I think this puts the company in a good place for now. It is buoyed by higher energy demand as the economy comes back to life. At the same time, it is developing its green energy projects at speed. Risks ahead for BPBut there are still risks ahead for BP. The transition towards renewable energy can come with its own challenges. For instance, some analysts see lower returns on these projects compared to BP’s projections. Also, huge investments are required for these projects. And their implementation may not always be a smooth ride. My takeawayI think it follows that my passive income from an investment in BP may remain relatively muted as it invests more and the returns are lower. However, green energy shares’ prices have a lot of potential. So as it renews itself into a different business, I think its share price could start rising, possibly even making up for the loss in dividend income.I already hold shares in BP. When I think about it from this angle, I am tempted to buy some more.  Access this special “Green Industrial Revolution” presentation nowlast_img

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