Troy's Brooke: What to expect from BP's dividend tomorrow

Troy Asset Management's Francis Brooke has cautioned against overconfidence on BP's anticipated announcement of a dividend increase when it reports its Q4 results tomorrow morning.

The oil giant is expected to announce a hike for the first time since it reinstated its dividend at the end of 2010, with some analysts suggesting a considerable increase could be on the cards. But while BP's dividend is now around half the level seen prior to the Gulf of Mexico disaster, the manager said he does not expect the company to return to such levels in the near future. "Some will get overly enthusiastic and think BP will double its dividend. I do not think it will do that but BP will show shareholders its intentions - and it has the cashflow to support that," said Brooke, m...