BP share price rockets after dividend hike

Shares in oil giant BP shot higher this morning, lifting the wider market, after the group pleased investors by raising its dividend.

The group announced forecast beating profits of $3.7bn for the third quarter, well ahead of the $3.2bn expected, while crucially it also upped its dividend by 5.6%. With investors keen to see big oil groups returning higher dividends rather than investing for growth in the current environment, the group was rewarded handsomely by the markets, with shares up 4.7% at 473.6p by late morning. BP, alongside financials such as Standard Life and Aviva, up 2.3% and 1.2%, respectively, lifted the FTSE 100 index by 0.6% to stand at 6,764 just before midday. However, it was not all good news ...