BP set to halve £6bn dividend; Ashby confident of payout growth

BP is set to halve its previous £6bn annual dividend when it reinstates payouts early next year.

New CEO Bob Dudley says BP, which accounted for one-sixth of the UK market dividend, is planning to reinvent it as a smaller and higher-growth company, the Sunday Times says. This means the oil giant, which was one of the most widely held positions in UK equity income portfolios, is likely to see a lower dividend in the future. The paper says BP is likely to halve the dividend it had before the Gulf of Mexico disaster, which equated to about £6bn. Initial cash saved will be set aside to help cover costs of the Gulf clean-up. Later, the extra funds will be used for development in em...