1 Big Reason to Pause on This Energy Stock
The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith discusses topics around the investing world.
n today's edition, Austin talks about British Petroleum (NYS: BP) . The company came across his radar as a potential energy addition for his portfolio, but he's decided to put the pause button on buying. Unsurprisingly to many investors, it's the same old broken record: the dark cloud of potential liabilities regarding the Deepwater Horizon oil spill. The disaster has cost BP a pretty penny, and it may not be done paying. Despite looking pretty cheap on paper, the uncertainty still remains too high for Austin to pull the buy trigger. That's not to say the company doesn't have merits, though: It pays a nearly 5% dividend, handily outpacing the broad market and many of the other supermajors.
At the time this article was published Austin Smithhas no positions in the stocks mentioned above. The Motley Fool owns shares of Halliburton and Ultra Petroleum.Motley Fool newsletter services recommendClean Energy Fuels, Halliburton, and Ultra Petroleum. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.