Stateline Residents Will Feel the Effects if BP Decides to Cut Dividend

A local financial expert says the move could end up punishing all of us *more than the oil giant.

A dividend is a portion of corporate earnings paid out to shareholders. 23 news financial expert Brad Gummow says cutting the dividend could have a crippling effect not only nationally but also for many here in the stateline.

Chances are your pension plan.. retirement account or any mutual funds you own likely contain BP shares.

Gummow says eliminating dividends weakens the oil giants ability to pay out the benefits promised to us. And that's not all.

"So if we are already in our delicate expansion and expecting our GDP increase of 2 percent. If we were to take away that one half of one percent.. that's a reduction in our growth of a full 25 percent. to put that in perspective for us here that means fewer jobs."

The oil giant is due to announce its dividend on July 27. BP. as we know it today... Is the marriage of British Petroleum and Amoco.. which is a U.S. Company started by the Rockefeller family.

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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Cheri on Jun 16, 2010 at 01:50 AM
    BP should have been more careful to begin with. I hope they are forced to close completely down. They are 150% responsible for this oil spill. It's their fault and they should pay, not us.
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