ConocoPhillips is one of the American multinational energy corporationscompanies. This headquarters was located in the Energy Corridor district of Houston, Texas in the United States. It is a reliable 5% yield tied to a good company. ConocoPhillips shares are an attractive offer in a market where many companies may be forced to cut their dividends. That being said, the uncertainties surrounding the oil and gas market are cause for concern. Daniel Foelber owns shares of ConocoPhillips.COP stock at https://www.webull.com/newslist/nyse-cop has seen a sharp decline due to the Coronavirus/Oil Price War crisis and has fared worse than the broader markets, going by the 2008 financial crisis, it looks very likely that the stock could continue to underperform the broader markets.
BP Stock a Bottom-Fisher’s Buy
- Investors anticipating a dividend cut and the COP stock company shouldering a massive debt load, there are plenty of reasons for concern.Despite these overhangs, today’s prices may be a solid entry point for BP stock. Sure, risks remain.
- However, energy prices are continued to bounce back. With these factors in mind, there’s plenty of potentials for shares to move higher.
Just Started For BP Stock
- The coronavirus is taking its toll and it is no surprise demand for petroleum collapsed.
- The pandemic slowly ending is expecting energy prices to continue bouncing back. Granted, experts are the EIA (Energy Information Administration) who don’t see prices heading above $50 per barrel until the end of 2021.
- But, it is steps to improve their cash flow situation while oil lingers at lower-than-normal prices. This company is expecting this breakeven oil price to fall from $56 a barrel in 2019 to just $35 a barrel in 2021.
- Granted, this is implied continued profitability challenges this year. But it is caring a forward-looking approach that shares are continued to climb in tandem with oil prices, as investors anticipate a rebound in net income and cash flow.
Is the Dividend Safe?
- A dividend cut seems to be the other shoe that’s yet to drop. These shares have a seemingly high yield of 10.7%, but that’s only because investors expect a cut sometime soon.
- Peers like Royal Dutch Shell (NYSE:B, NYSE:RDS.A) have already slashed their dividends. BP is one of the next ones to announce a cut.
- They are speaking of debt, that is the other problem at hand with this company. This is stating that the company’s outstanding debt is continued to climb.
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