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Canada’s Oil Dividends Threatened as $70 Crude Hurts Cash

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The ability of Canadian oil producers to lure investors with generous dividends is being tested as cash flow is squeezed by crude trading near five-year lows.

Canadian Oil Sands Ltd. will cut its quarterly dividend 42 percent to 20 cents a share in late January, the Calgary-based company said in a 2015 budget forecast statement today after the close of North American markets. Companies will have to choose between reducing spending or payments to shareholders, said Sprott Asset Management LP’s Eric Nuttall.