BP oil spill hits UK dividends

UK dividends shrank by £2bn last year as BP scrapped its payout in the wake of the devastating Gulf of Mexico oil spill.

Figures from Capita Registrars show dividends paid out in the UK fell to £56.5bn, with the main culprit being the cancellation of £5.4bn in dividends from BP, writes the Telegraph. Prior to the accident, BP was one of the the biggest dividend payers in the UK. But, the oil major suspended its dividend last June as part of a deal with the US government. However, the company has hinted that when it unveils its fourth-quarter results this week, it will reinstate its dividend at about seventy cents per share for the quarter - around half 2009's level. Excluding BP, dividends rose 7.5% ...