BP dividend likely to be 65% lower upon return - RBS

Troubled oil giant BP will restore dividends next year at 65% below its previous payout level, derivative prices show.

OTC dividend swaps for BP, which is selling $30bn of assets to pay for the Gulf of Mexico spill, are implying a full-year dividend of about 13p in 2011, according to RBS equity derivatives strategist Bhavin Patel. For 2012, swaps trading implies a payout of about 16p, Bloomberg reports. BP's 2009 annual return was 56 cents, or 36.42p, per share. RBS says the swaps, where investors bet against each other on the future level of payments, show the projected dividend for 2011 has fallen from 18p two months ago. After taking a $32bn hit because of the Gulf of Mexico disaster in Q2, newl...