BP Slashes Its Quarterly Dividend by 50%
BP (NYSE: BP) became the latest petroleum sector company to reduce its dividend in light of this year's deep oil market downturn. The energy giant slashed its quarterly payout by 50%, which will halve its yield from its prior level of 10.7%. It was the company's first payout reduction since just after the Deepwater Horizon disaster in 2010, when it halted its dividend for several quarters.
The move reflects BP's new capital allocation strategy: The energy company intends to reduce its investments in oil and gas production, and shift that capital instead to low-carbon energy sources. BP anticipates increasing its spending on cleaner energy from around $500 million per year to about $5 billion per year by 2030.
Image source: Getty Images.
Source Fool.com
