BP announced today that the company will reinstate their dividend program at $.07 per share for the fourth quarter.
Investors are speculating whether BP will reinstate their dividend next week when they report their fourth quarter earnings results.
The dividend announcement comes as Schlumberger reported revenues growth of 58% in the fourth quarter with net income rising 42%.
A recent research report from Sanford C. Bernstein & Co. commented that BP is on track to restore their dividend next year.
No sector reflects the markets attitude change more clearly than the deepwater drilling stocks.
Diamond Offshore Drilling announced today that the company will cut their quarterly dividend by 45% due to uncertainty on the drilling moratorium in the Gulf of Mexico.
At the midpoint of this year it seems a good opportunity to review the biggest dividend stories of 2010.
By buying a dividend stock with a 7% yield, you stand to double your investment in a decade even if the stock price doesn’t budge.
It was only 18 months ago that JP Morgan, Bank of America and even General Electric were in similar situations.
For weeks now, questions, rumors, speculation and predictions have been swirling about BP.
BP shares plunged nearly 16% today as investors dumped the stock since a dividend cut appears imminent.
Goldman Sachs analyst, Michelle della Vigna, believes that the increasing cost of damages and reduced earnings outlook will impact BP’s dividend.
Falling oil prices are producing attractive dividend yields among stocks in the energy sector.