Oil Dividends Are Under Scrutiny as Small Companies Crack
- Biggest energy companies' dividend commitment comes at a price
- Some investors critical, say investment should come first
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Europe’s biggest energy companies are doing everything they can to keep paying dividends. If their smaller peers are anything to go by, they’re fighting a losing battle.
Companies such as Royal Dutch Shell Plc, Total SA and BP Plc have reduced spending, sold assets and even issued scrip dividends in lieu of cash to keep shareholders happy in the midst of the worst oil rout in over a decade. While the larger operators have largely succeeded in keeping payouts intact, smaller players are starting to show the strain.