of FTSE100 There are lots of nice shares that may offer you beneficiant ranges of passive revenue. What impresses me is that blood stress (LSE:BP.), with a possible return of 5.3%. That is greater than double the index and greater than you could possibly earn from a high-interest financial savings account.
This implies somebody with £500 to spare would earn £26.50 in dividends. Is that this a “will need to have” for revenue traders? Let’s have a look.
money is king
Dividends are distributions of earnings, however they’re paid in money. And, as any accountant will let you know, earnings could be very completely different from precise cash. BP is an efficient instance.
The oil big simply reported a 2025 alternative price (RC) revenue of $1.1 billion. Working money stream (OCF) was $24.5 billion.
The big distinction between these two figures is defined by the exclusion from RC revenue of working capital actions that have an effect on money and the impression of power value fluctuations on the Group’s inventories. Naturally, oil costs have the largest impression on efficiency.
For the statisticians, there’s a 96% (nearly excellent) correlation between the bottom value of Brent crude oil and BP’s money flows from 2018 to 2025.
| 12 months | brent crude oil ($ per barrel) | Internet money from working actions ($1 billion) |
|---|---|---|
| 2018 | 71.34 | 22.9 |
| 2019 | 64.30 | 25.8 |
| 2020 | 41.96 | 12.2 |
| 2021 | 70.86 | 23.6 |
| 2022 | 100.30 | 40.9 |
| 2023 | 82.49 | 32.0 |
| 2024 | 80.52 | 27.3 |
| 2025 | 69.14 | 24.5 |
In 2020, on the top of the pandemic, BP’s OCF was $12.2 billion. It lower its dividend by 50% to protect money. It is a priceless reminder that nothing ought to be taken with no consideration on the subject of funds, particularly for companies that face an enormous variety of operational challenges on daily basis.
so as
Nonetheless, since 2020, the group’s dividend has steadily elevated.
For 2025, it has been declared 32.96 cents (24.2 pence at present change charges). The ultimate quarterly dividend was 79% of the 2020 lower. The present yield (as of February 13) is 5.3%, making BP the eleventh most beneficiant dividend payer within the FTSE 100.
For comparability, the group paid out $5.1 billion in dividends in 2025. This means that there’s loads of headroom.
And simply to remind you ways efficient dividend reinvestment is, somebody who purchased £500 of shares at present may develop this to £1,818 (a 263% return) over 25 years, assuming the group can preserve its present yield.
new technique
In a change of method, the Group has determined to droop share buybacks. As an alternative, use your surplus funds asspeed up reinforcement“Stability sheet and its” utilizationDistinctive deep hoppers offering oil and gasoline alternatives”.
Certainly, the group has labored onerous to cut back its web debt. It fell by 2% all through 2025, however is predicted to say no much more considerably within the coming months because the group continues to eliminate a few of its non-core property.
BP has struggled to ascertain an identification of late, nevertheless it seems to have a clearer route. The corporate plans to focus extra on its hydrocarbon enterprise. When the group’s new boss Meg O’Neill takes over in April, she will likely be happy to know that a lot of the onerous work has begun. In my view, the group’s current actions (bettering money stream, lowering prices and borrowing) have made BP’s dividend extra dependable than earlier than. That is why I feel this can be a nice passive revenue inventory to think about.