7 ETFs for Investors Mourning the Death of BP's Dividend
Almost two months after an offshore explosion sparked one of the worst environmental disasters in U.S. history, the White House has stepped in to ensure that British oil giant BP (NYSE: BP) is held accountable for cleanup efforts and the economic damage done (see Five ETFs To Watch Ahead of Obama's Oval Office Speech). With public outrage toward the oil industry reaching new highs, BP has had little leverage to resist the measures proposed by lawmakers; BP hastily agreed to set up a $20 billion escrow fund to pay claims and suspend at least three dividends. The company hopes to resume its dividend payments in 2011, but it remains to be seen if that will be a politically or financially viable option.... more
BP's Dividend: You Don't Know the Worst of It
Two days ago, under pressure from the White House, BP (NYSE: BP) announced that it was cancelling its first-quarter dividend and suspending dividends until at least 2011. That's disappointing news for shareholders who rely on that income – BP is widely owned by pension funds in the U.K. and the U.S. Unfortunately, the bad news doesn't end there. There is reason to believe that once BP resumes dividend payouts, the dividend amount will be significantly lower than it has been over the last two years. In fact, the market expects that BP's 2011 dividends will total just $1.26 – nearly a two-thirds decline from the $3.36 it paid out last year.... more
4 Dividend Stocks Showing You the Money
Last year brought us a lot of dividend slashing, but more and more companies are committing themselves to sending out money to their shareholders in 2010. Motley Fool Income Investor readers certainly appreciate that trend, so let's take a closer look at some of the companies that inched their payouts higher this past week. We can start with Casey's General Stores (Nasdaq: CASY). The convenience-store operator is juicing up its quarterly dividend by 18% to $0.10 a share. It comes at a perfect time, as Casey's is trying to rebuff a hostile takeover bid. Sweetening the pot for shareholders may make them more patient -- and loyal.... more