BP is yielding a sweet 8.6%, but before investors plunk down money and buy BP stock for the juicy dividend they may want to ponder if it will last. Dividend-hungry investors have long gravitated to oil stocks because oil companies throw off oodles of cash, but the costs of cleaning up BP's big spill in the Gulf of Mexico, which could run as high as $40 billion, could put the oil giant's dividend in jeopardy.
Besides eating up BP's cash stash for a dividend payout, BP could face political pressure to stop paying billions of dollars to greedy shareholders even as people living near the Gulf see their livelihoods destroyed and tarballs and dead pelicans multiply on the beaches and marshes. Already, two U.S. Senators, Chuck Schumer (D-N.Y.) and Ron Wyden (D-Ore.) have weighed in, calling it “unfathomable” that the company will continue paying dividends without knowing the extent of the clean-up costs.
Source: Forbes
Related Articles:
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
Today, we’re going to look at three tech stocks that you can buy now and forget about for the next decade, in large part because of their ab...
-
With the bullishness of the Trump era, dividend stocks may have moved to the back seat for a lot of investors. While cyclicals and financial...
-
If you're looking for bargains, you may want to check out the Basic Materials sector, which has pulled back 6% over the past quarter. Th...
-
Performance and sustainability - that's what investors in Dividend Growth Stocks are looking for. It's very easy to find stocks w...
-
There is a short cut to identifying companies that might be great bargains. The key input is free cash flow (FCF), so start there. The more ...
0 comments
Post a Comment
Post a Comment