BP dividend to be re-instated

BP dividend compared that from Royal Dutch Shell


BP dividend - a bit of history

In June, 2010, BP Plc announced a temporary halt to dividend payments, including

  • cancellation of the first-quarter dividend due for payment on June 21, and
  • no interim dividends for the second and third quarters of 2010

The payouts were expected to be about $2.6 billion per quarter, in line with recent quarters.

RNS Number : 7594N
16 June 2010


June 16 2010

BP Establishes $20 Billion Claims Fund
for Deepwater Horizon Spill and
Outlines Dividend Decisions

. . . . . .

. . . . the BP Board has reviewed its dividend policy. Notwithstanding BP's strong financial and asset position, the current circumstances require the Board to be prudent and it has therefore decided to cancel the previously declared first quarter dividend scheduled for payment on 21st June, and that no interim dividends will be declared in respect of the second and third quarters of 2010.

The Board remains strongly committed to the payment of future dividends and delivering long term value to shareholders.

The Board will consider resumption of dividend payments in 2011 at the time of issuance of the fourth quarter 2010 results, by which time it expects to have a clearer picture of the longer term impact of the Deepwater Horizon incident.

The Board believes that it is right and prudent to take a conservative financial position given the current uncertainty over the extent and timing of costs and liabilities relating to the spill.

. . . .

BP dividend to be re-instated in 2011

Well, sort off!

The new chief executive, Bob Dudley, has announced that he will unveil a new startegy for BP going forward. Commentators expect this to include:

  • a much reduced dividend pay-out, perhaps just half of previous dividend pay-out

  • use of (part of) the retained cash to invest in emerging markets

  • a much more streamlined - read: smaller and more focussed - BP


1.the above mentioned announcement is an abridged version of the full announcement which can be found HERE

2.the above mentioned announcement is solely used as an example of a UK listed company's future dividend intentions and is not a share recommendation

3.the price of shares and investments and the income derived from them can go down as well as up, and investors may not get back the amount they invested

4.where the information consists of pricing or performance data, the data contained therein has been obtained from company reports, financial reporting services, periodicals, and other sources believed reliable

5.data computations are not guaranteed by Early Retirement Investor.com or any of the data providers and may not be complete.

6.The editor or contributors may have an interest in the share mentioned.

7.Dividend yields move up and down. As a company’s share price increases the dividend yield falls. And vice versa: if the share price falls the dividend yield increases.

Return to Rising Dividends for announcements from other companies with an amended dividend policy.

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