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BP finally bowed to political
pressure and announced it would cancel its quarterly dividend for the
remainder of 2010.
While this may be the prudent move to lessen
the political pressure on the company, it’s not good news for BP
shareholders who depend on the company’s dividend for income, many of
them retirees with funds that hold BP shares.
On one hand, BP is
making it clear that it plans to survive the Gulf of Mexico oil spill
crisis. Cutting the dividend will conserve cash and help it meet
whatever financial obligations it incurs.
But what about the
shareholders who depend on that large quarterly dividend?
Those
who haven’t sold probably will and redeploy their money into stocks with
stable dividends.
Right now, there are energy infrastructure
stocks that have reliable revenue and market-leading dividends. One
company is paying 9% a year to its shareholders, and the stock has as
much 35% upside. To discover this stable alternative to BP, click
HERE.