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BP Could Restore Dividend in February

Thu, Aug 12, 12:35 PM ET, by eDividendStocks.com

The Telegraph reported today that BP (BP: 38.26 -1.37%) could restore their dividend by next February.

The Telegraph article cited one of BP's largest shareholders, Newton Higher Income Fund, who believes that BP is committed to restoring their dividend payments. Fund Manager Tineke Frikkee believes that BP's board will restore their dividend at the earliest possible moment.

Prior to BP suspending their dividend payment, BP was the largest dividend payer in the UK. However, BP did stress to investors that the company "remains strongly committed to the payment of future dividends and delivering long term value to shareholders."

BP shares have risen over 20% since announcing the dividend suspension. This is similar to performance we saw from other blue chip stocks that were forced to cut their dividends last year. Bank of America (BAC: 13.16 -0.23%), JP Morgan Chase (JPM: 37.8368 +0.18%) and General Electric (GE: 15.52 -1.15%) all saw their stock prices start to rise within days of announcing drastic dividend cuts.

BP had previously left open the possibility of restoring their dividend in 2011, but it's positive to see the confidence in one of BP's largest shareholders that BP could restore their dividend as early as February.

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This Article's Word Cloud:   America   Article   Bank   February   Frikkee   Fund   General   However   Manager   Morgan   Newton   Others   Telegraph   This   announcing   believes   board   committed   company   could   days   delivering   dividend   dividends   drastic   forced   largest   long   moment   open   over   payer   payment   payments   positive   remains   reported   restore   restoring   rise   risen   shareholders   shares   since   stocks   strongly   that   their   will   year

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