Honestly, you should probably just ignore everything you read. Most of what you read from the mainstream media is a total waste of your time, and potentially a huge waste of your money.
Today, one of the world’s best oil investments is getting hammered on the heels of bad news and even worse headlines from the media.
So if you’ve been waiting to buy BP (NYSE: BP) — the time is just about right.
That’s because the Financial Times reported today that the U.S. Department of Justice is now accusing BP of gross negligence in the Deepwater Horizon oil spill of 2010.
Shares are already down a few percentage points, but I think it’s possible we could see a double-digit correction over the next few weeks.
Do yourself a favor: be ready to buy shares of BP if we see shares drop 10% or more.
BP is still one of the world’s largest oil companies. It still sells billions of dollars worth of oil and gas to millions of people around the world. It still owns trophy oil and gas properties on nearly every continent.
It’s still one of the best blue-chip oil companies you can own. Except today, and possibly for the foreseeable future, it’s selling at a discount to what you could buy it for six months ago.
And even better, it pays an industry leading 4.6% annual dividend yield.
If you’re still on the fence about using this type of bad news to buy a stellar blue chip type company, hear me out…
Whatever the result from this Dept. of Justice suit, it likely won’t be enough to significantly harm the long-term profitability and business operations of BP. The federal government is simply not in the business of putting people out of business. As we saw a few years ago, the Feds are more interested in protecting big businesses from bankruptcy then putting people out of business.
In a few months or a few quarters, this suit will be old news – forgotten by the throngs of short-attention spanned investors who make up the bulk of the market.
So pretend we’re a few months down the road already. Don’t you wish you had jumped at the chance to pick up a 4.6% dividend from this world-class oil company when it was on sale?