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Originally posted by: billryan
Cutting dividends generally hurts stock price, so I am leery of that happening. These companies should be sitting on boatloads of cash so I don't think that will happen. It is a possibility though. I'm putting some in trusts, but those are long term for kids aged eleven to two, and that they inherit at thirty. Short term, I cant decide.
I think you're correct it's a no-brainer, grand slam in a trust for a few 10-11 yr olds. Alan made some good points also IMO. Personally, I hold many different oil/oil related stocks, Conoco and BP being the largest co.'s, the rest are smaller and some pipelines. I'm thinking if any of the biggies are going to cut their divvy, it'll be BP first at bat, but I kind of suspected that going in and was already relatively priced in to it. The gulf spill settlement really ate into their cash reserves. I fear ETP might cut their divvy but ,damn, I hope not. One thing about the divvy's and the majors in oil are that they consider the dividends pretty sacrosanct and will do anything to avoid cutting them.
We'll see what happens between now and start of summer, summers are usually a drawdown of stockpiles, if there's not a very large drawdown,,hellooo 20's again.
