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BP p.l.c. Message Board

  • lipitor_pfizer lipitor_pfizer Jan 4, 2013 10:51 AM Flag

    Is BP's dividend safe?

     

    Is BP's dividend safe?
    BP raised its quarterly dividend by 12.5% in the third quarter of last year, following a 40% rise in underlying earnings. The move was an attempt to win back the support of institutional investors, but the reality is that BP is still a company in transition.

    In a worst-case scenario, BP could be hit by a $21 billion fine from its Clean Water Act court case and by falling oil prices at the same time. Such a scenario would hit the company hard and would threaten its dividend, making it vulnerable to a takeover bid. However, I don't think this will happen. I expect to see Brent Crude stay above $100 per barrel and I think that a lower fine for negligence, or even a settlement before the case reaches court in February, is much more likely.

    Overall, I think that BP's dividend looks reasonably safe, but is unlikely to grow significantly over the next couple of years.

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    • hey lipitor_pfizer,

      Are you asking us, stating an opinion. or are you quoting "The Motley Fool article dated Jan. 4, 2013 Posted on Yahoo @ (Fri 10:41AM EST)

      I see alot of I`s in your post! So which is it? Let us all know, ok.

    • BP's dividend will increase over the next few years! Their cash flow is increasing by 50% later this year based on brent averaging $100! BP and Rosneft are working together so if BP can help them become more profitable Rosnefts dividend policy is to pay a minimum of 20% of net profit to shareholders....its dividend will increase too! Brent is still $110+! It's not going below $100 unless there is a financial meltdown. BP's margins are expanding so it'll be better able to handle a decrease in oil too. Oh and BP will start a share buyback later this year!

      Buy BP and forget about it! Collect the dividend and treat it as an inflation indexed annuity!

      Sentiment: Strong Buy

 
BP
38.83+0.08(+0.21%)Jan 30 4:01 PMEST

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