The whisper on the street is that BP will resume dividend payments next year, only a few months after its cancellation earlier this year following the disaster in the Gulf of Mexico. The disaster saw oil spew for nearly 3 months before being put to an end with operation "Top Kill" on July 15. Mr. Dudley the CEO of BP said that a decision on the dividend will not be decided until next year.
BP recently agreed to set up a 20 billion dollar escrow account for liabilities involved with the disaster. BP shares have declined since the disaster but have been very strong as of late. The stock hit a low of 26.75 but has since rebounded over 50%.
Andy Kibbens CEO of The Markets Are Open had advocated that it was a mistake to sell BP stock at $30 even as the stock tumbled. He mentioned that BP's balance sheet was equivalent to a well capitalized mid sized country and that it would have the ability to pay up to 100 billion in liabilities if spread across time.
The company currently plans to sell 30 billion worth of assets over the next two years to pay for the liabilities associated with the oil spill.
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