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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