BP should suspend dividend, says Rensburg Sheppards

A temporary suspension of BP's dividend would be good politics and would not damage pensions too much, says Rensburg Sheppards Investment Management.

The oil giant is under intense US political pressure to suspend payments, despite it already announcing an interim payment. John Haynes, Rensburg's head of research, told Radio 4's Today programme BP could "certainly afford to suspend dividends in the near term", and that damage to shareholders would be minimal. He said: "It would be prudent to suspend, both politically and because they are still not sure the size of the damage. If they do for at least one quarter, that would send the right political message." BP's open-ended liability must be capped and counted before making decis...