Is BP p.l.c. (BP) a Good Option for Passive Income Investment?

BP p.l.c. (NYSE:BP) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now.

Is BP p.l.c. (BP) a Good Option for Passive Income Investment?

An oil rig surrounded by the expanse of sea, the pumping operations in progress.

BP p.l.c. (NYSE:BP) expects the total of its dividends and share buybacks over time to be around 30% to 40% of operating cash flow. The company is targeting an increase of at least 4% per year in its ordinary dividend and announced a dividend of $0.08 per share in April. As of the writing of this piece, BP boasts an impressive annual dividend yield of 6.13%.

BP p.l.c. (NYSE:BP) also announced $750 million of share repurchases at the end of the first quarter of 2025, and the $1.75 billion share buyback program it announced with the fourth quarter results was completed on April 25, 2025.

To help improve its profitability, BP p.l.c. (NYSE:BP) has revealed that it is working on a $4 billion – $5 billion cost reduction program. The company delivered $800 million of structural cost reductions and $300 million of absolute reductions last year. Moreover, it was already $500 million lower in terms of absolute cost base in Q1 2025, compared to the same period in 2024.

BP p.l.c. (NYSE:BP) is a British multinational company recognized worldwide for quality gasoline, transport fuels, chemicals, and alternative sources of energy such as wind and biofuels.

While we acknowledge the potential of BP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BP and that has 100x upside potential, check out our report about this cheapest AI stock.

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