Owning BP (LSE: BP.) shares may have some people rushing to glue themselves to the road in protest. However, I believe it offers good news for the planet as well as investors.
It’s an investment for the long term in every sense, which makes it the best buy for my portfolio March.
BP is transitioning into an integrated energy company to help power the zero-emission revolution worldwide.
In the medium term, there are 1.4 billion cars globally that need to fill up with dinosaur juice. In time, BP’s size and scale mean its resources can deliver the global change environmental campaigners want.
Powering cleaner transport
For example, BP recently announced plans to invest $1bn by 2030 into electric vehicle (EV) charge points across the US.
It is also partnering with global rental giant Hertz to roll out fast-charging at its hire depots.
Investment in charging hubs will include large-scale development for rideshare and taxi drivers.
EV charging is one of BP’s “engines of strategic growth” in which the company plans to significantly grow investment by 2030.
BP has 22,000 EV charging points worldwide. It is targeting 100,000 globally by 2030.
Its BP Pulse brand is creating the first charging corridor for trucks in Europe as demand grows. Experts say that by 2030 there could be 270,000 electric lorries on the road. They would need 140,000 public electric charging points.
In the UK, BP Pulse has a network of 9,000 public chargers and has installed more than 50,000 home chargers.
A plan for the future
For me, this is the best of both worlds. It is powering the world of today and tomorrow. I understand that change takes time, especially for a company with $250bn in revenues and a 4% dividend yield.
I also recognise that only a few companies can really drive change.
Some call BP a dinosaur because of its involvement in fossil fuels. There is the risk of demonstrations, legislative restrictions, and the continuing spectre of potential oil spills.
But in my view, despite the risks, BP is a company that is driving future change. I intend to invest so it can power my portfolio too.
All aboard the bonus bus
My bonus stock is global transport provider National Express Group.
Full-year results for 2022 are due on March 2. I don’t think the current share price reflects its potential.
It has plunged nearly 50% in the past year. There may be a risk of further falls; its historic lows are 40% below its current share price.
However, there are lots of signs of growth and executives want to reinstate dividends for the 2022 results. Previous performance is no guarantee, but anything similar would give a yield of 4-8%. That’s a healthy return.
Given its potential for growth and improving operating margins, I am staying on this journey for the long haul.
