Investors are speculating whether BP will reinstate their dividend next week when they report their fourth quarter earnings results.
A recent research report from Sanford C. Bernstein & Co. commented that BP is on track to restore their dividend next year.
One of BP’s largest shareholders, Newton Higher Income Fund, believes that BP is committed to restoring their dividend.
As expected, BP announced today that the company will officially suspend their quarterly dividend in the wake of the Gulf oil spill disaster.
It was only 18 months ago that JP Morgan, Bank of America and even General Electric were in similar situations.
BP shares plunged nearly 16% today as investors dumped the stock since a dividend cut appears imminent.
Fitch Ratings believes that BP's dividend is safe despite the widespread speculation of an imminent dividend cut.