10 Best FTSE Dividend Stocks To Buy Now

4. BP p.l.c. (NYSE:BP)

Number of Hedge Fund Holders: 40

BP p.l.c. (NYSE:BP) ranks fourth on our list of the best FTSE dividend stocks. The British multinational oil industry company reported growth in its net debt to $24 billion in the first quarter of 2024, from $21.2 billion in the prior-year period. Its debt-to-capitalization also grew to 22% from 19.6%. Due to this, S&P Global downgraded the stock’s credit outlook to stable from positive. The company’s CEO has devised a solution to address its debt by proposing to allocate 80% of excess cash toward dividends and share buybacks. Moreover, the company has announced $1.75 billion in share buybacks. Though this could be good news for income investors, S&P stated that this approach is unlikely to reduce debt, contrary to their previous expectations, despite the current favorable market conditions. The company is trying to improve its cash position as it generated over $5 billion in operating cash flow during the quarter.

That said, Citigroup stated that BP p.l.c. (NYSE:BP) is surpassing most of its oil peers in the oil and gas industry. They believe that the company is perceived as a potential leader in Europe’s new energy landscape, particularly after right-wing parties demonstrated significant influence in the recent European Union elections. Citi added that they see the emergence of a profitable and scalable transition business within the company, which could establish the benchmark for the integration of a modern European energy company into progressive equity portfolios.

BP p.l.c. (NYSE:BP)’s adoption of modern technology is evident in its electric vehicle charging division, which is actively seeking to acquire Tesla’s supercharging stations across the US. In addition to the infrastructure, BP has committed $1 billion to expand its EV charging network, including hiring the personnel associated with these sites.

BP p.l.c. (NYSE:BP) has a forward P/E of 7.43, which appears low, considering analysts’ projections of a 10% annual growth in the company’s EPS until the end of 2026. It is one of the best FTSE dividend stocks on our list as the company has been regularly paying dividends to shareholders since 1998. It currently pays an interim dividend of $0.4362 per ADS and its stock has a dividend yield of 4.88%.

BP p.l.c. (NYSE:BP) was a part of 40 hedge fund portfolios, which held in aggregate $2 billion worth of shares at the end of March.