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

The BP effect

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...