Biz Brief: BP May Cut Dividend
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CEO Tony Hayward may be backing away from plans for BP (BP
) to keep its dividend intact. According to
a report in The Wall Street Journal,
"BP PLC is considering deferring or reducing its second-quarter dividend to help quell the political uproar in America." The BP board could defer the dividend and pay it to shareholders at a later date. Currently, the dividend is scheduled to be announced on July 27 and must still be approved by the oil company's board.
"We are considering all options on the dividend. But no decision has been made," Hayward told the paper.
BP's yield is currently 9% -- very high for a mega-cap company. The increase in yield is due to the sharp drop in BP's stock, which is down by almost half since the Deepwater Horizon explosion.