Oil slump highlights pressure on dividend payouts
Extracts from an article by Garry White: 22 Aug 2015
Some in the City are concerned that distributions to shareholders at some major dividend payers are too high. This is particularly true for the oil sector.
Based on current forecasts, the prospective yield in 2016 for BP is about 6.9pc and for Shell it stands at 6.7pc. These unusually high yields are often an indicator of an impending cut in the payout.
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