Monday, June 14, 2010

BP (NYSE:BP) Shares Drop on Dividend Uncertainty

Shares of BP (NYSE:BP) dropped again as the board of directors of the oil giant discuss today what, if anything, they're going to do about the pressure to suspend the quarterly dividend.

In what could be an attempt to pile on even more economic charges to the company, Democrats have been pushing for BP to drop their dividend until the company pays for the cleanup of the oil spill in the Gulf of Mexico.

Consensus at this time is the dividend won't be ended, but it could be deferred to a later date, put into an account for later dispersal after costs are paid, or offered in shares of the company.

BP isn't expected to make a decision any time soon.

1 comment:

Jake said...

The income of BP should be impounded by the government to pay its obligations, in case it tries to hide behind a bankruptcy.