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JPMorgan, which last week reported a $17 billion profit for 2010, has said it hopes to raise its dividend as much as a dollar in the coming months.
While we believe that Tullow is one of few companies that in the current environment could actually execute a rights issue, we see the cuts in exploration, general and administrative expense and dividend as much more sensible initial steps in protecting the balance sheet.
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3i is also expected to slash its dividend by as much as two-thirds.
The rosy report could pave the way for JPMorgan to increase its dividend by as much as a dollar.
BSkyB shares rose 2.9% after broker JP Morgan suggested that the pay-TV company could return cash to investors by paying a special dividend worth as much as 120p per share.
That could bring the total possible tax rate on dividends to as much as 43.4 percent.
The IRS in December released Revenue Procedure 68-08, which allows REITs to declare dividends in as much as 90% stock and as little as 10% cash while remaining in compliance with IRS requirements to distribute 90% of annual income.
But those people would also be subject to the additional 3.8 percent surtax, bringing the total dividend tax to as much as 43.4 percent.
While HSBC is expected to cut its dividend – perhaps by as much as 50% – it will be one of the few London-listed banks to make a payment for 2008 after RBS, HBOS, Lloyds TSB and Barclays all stopped their payouts to shareholders.
Although the firm unveiled a major strategic overhaul to cope with higher costs, it said it might also cut its dividend payments by as much as 45%.
But eliminating the double taxation of dividends could cost as much as $75 billion a year.
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