Thursday, June 17, 2010

BP Dividend Suspension Is A Hidden Tax On US Retirees

Thirty-nine percent of BP's shares are held in the United States by 133,300 individuals and institutions, according to BP's 2009 ownership statistics report. Since many single institutional holders have multiple beneficial owners, such as mutual funds, the total number of US individuals who directly or indirectly own BP exceeds the 133,300 number.

Obama's call for BP to suspend its dividend payments to pay for the Gulf Coast oil spill damage is a hidden tax on these US individuals. They have been asked by the President to give up their dividends to pay Gulf Coast residents and businesses.

Most shares in the US are owned directly or indirectly by older individuals in retirement accounts, according to 2007 US Survey of Consumer Finance Report published in February 2009.

Is it really fair to ask retirees and those saving for retirement to pay for the cleanup and damages in the Gulf Coast region? BP could have paid for the oil spill without suspending its dividend payments.

1 comment :

  1. How right you are. Thank you for saying so. Such folks include my mom; her portfolio included BP precisely because of its dividend.