Oil giant BP (NYSE: BP) has been in the news a lot over the past month, and not for the best of reasons. The massive oil spill in the Gulf of Mexico is still flowing and spreading across the region, with its ultimate reach and fallout still uncertain. Compounding problems for BP, oil prices have fallen sharply to around $68 a barrel because of the stronger dollar and concerns about the vigor of the global economic recovery. All of this negative news has help drive BP's share price down by more than 30% in the past four weeks. In turn, its current dividend yield has climbed to nearly 8%.
BP has long been a favorite of pension funds and other income-thirsty investors because of its generous dividend, but the recent setbacks have led some to question about BP's ability to maintain its dividend. Motley Fool Pro analyst Todd Wenning has his doubts about the "floatational stability" of BP's current dividend, and he cautions investors against buying into the company purely for that feature.
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