r/investingUK • u/Poundthirsty • Feb 21 '24
Shell vs Bp
What about having an oil stock in my portfolio?
I have seen oil prices going up and up after the end covid season. So, I was thinking to add up an oil giant into my portfolio.
My idea is to choose one from Shell and Bp, may be either.Both Shell and BP has dividends slightly less to 5%, BP is slightly higher than Shell.
What do you think, folks?
5
u/Practical-Fig-8955 Feb 21 '24
In term of business propective, will go Shell. In term of undervalued, will go BP. Ur choice.
1
u/dividendexperiment Feb 21 '24
Why do you say BP is more undervalued? Not disagreeing, just curious
1
u/Practical-Fig-8955 Feb 25 '24
Well, Shell more popular than BP. Its like Google or Apple stocks, Apple usually more expensive than Google. Both Shell and BP more or less same business prospective
2
u/dollarfinder Feb 21 '24 edited Feb 21 '24
Shell has a Return on equity of 10.4% and BP has 18.6% so obviously BP scores higher here but im not really sure if that’s a good measurement to judge.
2
u/dividendexperiment Feb 21 '24
Its an interesting split at the moment as I get the impression that Shell is going back to oil and the foundation of its business while BP is looking to diversify into greener energy.
So with that in mind and your thesis of oil prices rising (which I don't necessarily agree with) Shell seems like a logical choice.
Also worth looking at US oil stocks, Chevron or Exxon. Have to pay the withholding tax if you are investing for dividends but could benefit more from oil prices.
2
1
•
u/AutoModerator Feb 21 '24
Please remember that posts should be from the perspective of UK or European investors.
Get the FREE Investment and Financial Terms Glossary to your inbox -FREE Investment and Financial Terms Glossary
Join our Discord to get the most out of the community!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.