Big Oil: How Safe Are The Dividends?Rupert Hargreaves
Income-focused investors with a low-risk tolerance have historically looked too big oil to meet their income demands. However, the collapse in oil prices over the past 12 months has sharply reduced earnings and cash flow across the sector. Capex budgets have been slashed, cost reductions have been demanded of oil service providers and staff numbers have been reduced across the sector.
If oil prices remain depressed (as many forecasts are predicting) deeper cuts to spending can be expected. But what about dividends? Few . . .
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