[miningmx.com] – SHARES in BHP Billiton struck a seven-year low amid fears that the group might be forced to reconsider its progressive dividend policy, said Reuters citing analysts.
“We’ve been bemused for some time at the lack of share price depreciation in light of the deteriorating earnings profile for the group and we’ve been skeptical for many months about the dividend policy of the company,” Ben Lyons, a portfolio manager at ATI Asset Management told Reuters.
Goldman Sachs this week said BHP needed to cut its dividend in half to get it down to a sustainable level. UBS is forecasting a near 50% fall in BHP’s fiscal 2016 net earnings to $3.3bn, about half the $6.49bn the company paid out last year on dividends.
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