Dividends4Life: BP's Investors Not Convinced The Dividend is Safe

Dividend Growth Stocks News

BP (BP) said it understands the importance of its dividend to stakeholders, but said future dividend payouts will be decided by the board. BP currently pays a $3.36 per share annual dividend, which has an attractive dividend yield of 7.8%.

With the oil spill, there have been concerns that this divided is not safe as the cash flow generated by the company will not be sufficient to cover the clean-up and litigation costs plus the dividend. BP has already spent $1 billion on the clean-up, which is expected to be just a fraction of the total cost.

Source: StreetInsider.com

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