Ted Scott picks oil majors for 2010

F&C’s UK market strategist, Ted Scott, says oil majors will be supported by a number of factors next year, including secure dividends and strong oil prices.

Scott says despite fears from a number of market commentators, the oil majors such as BP and Shell, will probably not cut dividends next year and are in fact more likely to at least maintain dividend levels if not increase them.

"The oil price is not likely to decline substantially next year and I think could even surprise a little on the upside," says Scott.

"This will continue to be supportive of the sector as a whole and in particular the oil majors. In addition, a market realisation they are not likely to cut dividends will be supportive of their share prices."