The only thing that will be safe is the bonuses paid to the company executives. One of the major problems with trying to invest in US markets any more. Just to much is being siphoned off by too many as the money goes back and forth. Some top kill and blow out preventions, are needed with a lot of US companies in the area of executive pay and bonuses and churning by the HF traders. It's taking it's toll.
PR reasons alone--no way BP executives can allow a dividend with the pressure that their uncontrolled well is producing in Washington and the media. Imagine the public wrath and "presidential outrage" any positive quarterly earnings report will elicit!
Watch what happens to this stock price as the market realizes that the dividend is in danger.
"Watch what happens to this stock price as the market realizes that the dividend is in danger. Or on the day it is suspended."
Yep, there are the proactive and the reactive.
The proactive have already bailed and maybe shorted already. The reactive always have to get hit square between the eyeballs with an 'idiot stick' before reality sinks in...and they wonder why their brokerage account keeps on heading South.
given the current known costs, excluding legal liabilities, BP will have about 7 Billion left over.
Given the Exxon Valdez spill cost 11 billion in legal liabilities, one can only imagine that the additional liability costs are within the range of $20 to $30 Billion.....at least! there goes the $10 Billion dividend account....amoung others things!!
No. The dividend is not safe. So far this cost a billion dollars, and nothing has been done. This spill will go on for months, the clean up will cost 30 billion and then damages will cost God know how much. Their reputation is shop as a company, THIS IS BAD.