The BP Effect: We assess the impact on UK income funds

The BP effect

clock

Paul Burgin looks at the impact of BP cutting its dividend on the Equity Income sector.

Advisers are divided over the impact of the BP oil spill, which the company said today led to a loss of $17bn for the three months between April and June - a UK record. The oil giant announced in June it was suspending dividend payments until at least 2011. Dividends will remain suspended for the second and third quarters of the year. BP says the board will consider its position on future payments when it issues its fourth quarter results in February 2011. With BP dividends accounting for around £1 in every £7 of share payouts from UK blue-chip firms, what affect will the disaster hav...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Stepping out of cash into the Credit Sweet Spot

Event Voice: Stepping out of cash into the Credit Sweet Spot

Peter Marsland, Fixed Income Investment Specialist, from Aberdeen discusses the Short Dated Enhanced Income Fund at the June Fixed Income Market Focus.

Peter Marsland, Fixed Income Investment Specialist
clock 08 July 2025 • 4 min read
Investors undergo 'buyers' strike' in June sending order values to two year low

Investors undergo 'buyers' strike' in June sending order values to two year low

Middle East conflict did not deter investors

Eve Maddock-Jones
clock 08 July 2025 • 2 min read
The big questions around re-evaluating risk for the retail investment industry

The big questions around re-evaluating risk for the retail investment industry

Discussions at Global Investment Management Summit

Katrina Lloyd
clock 08 July 2025 • 8 min read
Trustpilot