Need a new share for your ISA? This FTSE 100 titan pays out 9% a year in cash!

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Cliff D’Arcy | Monday, 8th June, 2020 | More on: BP Enter Your Email Address See all posts by Cliff D’Arcy Image source: Getty Images. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Back in 2011, almost a decade before Covid-19 ravaged the world, one FTSE 100 behemoth suffered a horrific tragedy that almost killed it.The sheer scale of this disaster caused a wave of selling that crashed the firm’s shares by 55%. Many felt that the company was finished (but not me). The unfortunate firm, of course, was oil giant BP (LSE: BP).5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A FTSE 100 pillar crumblesBP has been a pillar of the FTSE 100 since its privatisation by the UK government in 1987 (alas, just as global markets crashed on Black Monday, 19 October 1987). Continued success in oil exploration and production saw BP climb the Footsie ranks until its value eventually exceeded £130bn.Then an environmental disaster of epic proportions nearly killed BP. On 20 April 2010, BP’s Deepwater Horizon offshore oil rig exploded. The incident killed 11 crewmen and polluted vast areas of the Gulf of Mexico.This tragedy sent BP shares crashing from their 2010 peak of 650p to just 296p on 25 June 2011. Shocked BP owners had lost £67bn in shareholder value. Some feared BP would be bankrupted by environmental damages in US courts. But I kept faith with this FTSE 100 behemoth.At 296p, I urged Motley Fool readers to buy deep into BP shares. My original article has been archived, but here’s a review a year later. BP shares swiftly recovered, spiking above £5 and up by exactly half (50%) one year on.The tens of billions in damages BP paid after Deepwater would bankrupted most other businesses. But BP sold assets, slashed costs, and lived on.BP survives Covid-19 and the oil-price slumpIn an eerie echo of the past, BP shares hit their 2020 high above 504p in early January. Then came the double whammy of the oil price war and the coronavirus. BP shares tanked, hitting a brutal low below 223p on 19 March.Today, shares in the firm trade at 369p, two-thirds above their March low. Even so, they are down a third over the past 12 months and languish 35% below their 12-month high.A fat dividend is BP’s ‘Big Positive’I have no idea what will happen to BP’s share price, earnings, and profits over any future period. Likewise, I cannot tell you what will happen to the price of oil over any time scale – because no one can.That said, I would buy BP shares for their main attraction, which is a fat dividend. The latest yearly dividend of over 33p a share equates to a dividend yield of 9%. That’s right, 9% a year, paid quarterly in cash, from a FTSE 100 firm worth a tidy £73bn.To sum up, BP might turn out to be a growth share, who can say? But right now, it’s a dividend play. Indeed, reinvesting that 9% a year back into shares will double your money in eight years (all else being equal). Even if BP cuts its dividend by a third, cutting the yield to 6%, that’s still a handsome cash return each year (tax-free in an ISA) as we all grow older and richer! “This Stock Could Be Like Buying Amazon in 1997” Need a new share for your ISA? This FTSE 100 titan pays out 9% a year in cash! Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shareslast_img

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