BP Dividend Cancelled
Published / Last Updated on 16/06/2010
by Ashley Clark, Director
BP will not pay dividends to shareholders from profits until at least 2011 as it has set aside $20bn (£13.5bn) for compensation for the Gulf oil distaster.
The decision, which some sensationalists will call a shock, does not come as a shock to us. The US government has always made it clear that it would seek compensation for victims, which is just and right.
Many professional investors were expectimg this although shareholders will suffer as a result of no dividend income and a fall in share value.
This cut in dividend will affect the returns for pension funds and other major equity income funds.
Barack Obama announced the compensation deal after talks at the White House yesterday with senior BP executives.
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