Dividend policy and FAQs
Answers to common questions on BP dividends
Policy
Dividends are the way the company makes distributions from the company’s profits to shareholders. The company intends to grow the dividend level over time, in line with the improving circumstances of the company.
BP directors decide the level of each dividend based on each quarter’s results. If an interim dividend is declared BP pays the dividend about eight weeks after the announcement. The amount and timing of a dividend may be changed at any time without notice. A dividend is paid for each share, so the amount you receive depends on the number of shares you own.
BP directors decide the level of each dividend based on each quarter’s results. If an interim dividend is declared BP pays the dividend about eight weeks after the announcement. The amount and timing of a dividend may be changed at any time without notice. A dividend is paid for each share, so the amount you receive depends on the number of shares you own.
General
What are dividends?
Dividends are one way the company makes distributions from the company’s profits to shareholders.
What do the terms 'ex-dividend' and 'record date' mean?
Before announcing each dividend and in consultation with the London Stock Exchange, we set a date on which our shares will be sold without entitlement to the dividend. This is known as going 'ex-dividend'. Before that date they are said to be 'cum dividend'.
If you buy shares before the ex-dividend date you are entitled to receive the dividend recently announced. If you buy on or after that date, in the ex-dividend period, that dividend is payable to the previous owner.
The dividend is paid to shareholders based on the number of shares held on the share register at the deadline ('record date'). The record date is currently two days after the ex-dividend date. If you receive a dividend having recently sold your shares and are unsure whether you are entitled to it, contact the agent who acted on your behalf in the sale. Depending on the terms of the sale, the dividend may be due to the new owner.
If you buy shares before the ex-dividend date you are entitled to receive the dividend recently announced. If you buy on or after that date, in the ex-dividend period, that dividend is payable to the previous owner.
The dividend is paid to shareholders based on the number of shares held on the share register at the deadline ('record date'). The record date is currently two days after the ex-dividend date. If you receive a dividend having recently sold your shares and are unsure whether you are entitled to it, contact the agent who acted on your behalf in the sale. Depending on the terms of the sale, the dividend may be due to the new owner.
How often will I receive a dividend?
BP expects to announce dividends four times a year, as most US companies do. When the operating results are announced for each quarter, the BP directors decide the level of quarterly dividends to be paid to shareholders. ADS holders will receive their dividends in US Dollars. The amount and timing of dividends may be changed at any time without notice. Preference shareholder dividends are expected to be paid twice a year.
When will I receive my next dividend payment?
Details of the upcoming dividend payment dates are below:
Details of the current dividend payment timetable
Can I choose how to receive my dividend payment?
Ordinary shareholders and ADS holders can choose to receive cash dividends by cheque or directly to their bank account; or participate in the Scrip Dividend Programme. Preference shareholders can choose to receive cash dividends by cheque or directly into their bank account.
Where can I find out about the Scrip Dividend Programme?
For questions on scrip please follow the relevant link below:
Ordinary and preference shareholders
What do I do if I have any questions about dividends or need help?
Please read the frequently asked questions and answers. If you have any additional queries or require further information please contact Capita Registrars:
Capita Registrars
Tel: 0800 701107 (freephone in UK)
Tel: +44 (0)20 3170 3678 (outside UK)
Capita Registrars
Tel: 0800 701107 (freephone in UK)
Tel: +44 (0)20 3170 3678 (outside UK)
How can I receive dividend payments directly to my bank?
If you decide to receive cash dividends, it is strongly recommended that they are paid direct to your bank or building society account. This avoids the risk of cheques being lost in the post, and means your dividend will be in your account on the dividend payment date.
The easiest, quickest and most secure way to provide your bank details is to register for an account on the BP Share Centre and provide your bank details online. Alternatively please use the Dividend mandate form below to provide your bank details to Capita Registrars:
The easiest, quickest and most secure way to provide your bank details is to register for an account on the BP Share Centre and provide your bank details online. Alternatively please use the Dividend mandate form below to provide your bank details to Capita Registrars:
Capita Registrars
Tel: 0800 701107 (freephone in UK)
Tel: +44 (0)20 3170 3678 (outside UK)
Tel: 0800 701107 (freephone in UK)
Tel: +44 (0)20 3170 3678 (outside UK)
Can I receive dividend payments directly to my bank if I am an overseas shareholder?
Yes. If you are an overseas shareholder, instead of waiting for sterling cheques to arrive by mail it is possible to participate in the International Payment Service (IPS) and receive dividend payments direct to your bank account in your local currency.
Further information regarding the IPS including terms and conditions, costs and forms for signing up are available from Capita Registrars.
Further information regarding the IPS including terms and conditions, costs and forms for signing up are available from Capita Registrars.
Do I have to pay tax on my dividends?
Dividends are announced net of tax (the ‘net dividend’). Dividends received are treated as though they had been paid after deduction of basic rate income tax (the ‘tax credit’). The total of these two amounts is sometimes called the ‘gross dividend’
Further information regarding the current tax credit on dividends is available from HM Revenue and Customs:
Further information regarding the current tax credit on dividends is available from HM Revenue and Customs:
When will I receive a tax voucher?
If you receive cash dividends directly into your bank account, you will normally receive an annual tax voucher in March, which will show the net dividend and tax credit for each dividend paid during the financial year.
If you receive cash dividends directly into your bank account and have registered for electronic communication you will be able to view and download a separate tax voucher for each quarterly dividend via your BP Share Centre account and will not be sent any paper vouchers.
If you receive cheques, participate in the Scrip Dividend Programme or have made a specific request to the Registrar, you will receive a tax voucher quarterly.
HM Revenue and Customs recommends that individuals retain tax vouchers for at least 22 months from the end of the tax year to which they relate, whilst self-employed individuals should retain tax vouchers for six years.
If you receive cash dividends directly into your bank account and have registered for electronic communication you will be able to view and download a separate tax voucher for each quarterly dividend via your BP Share Centre account and will not be sent any paper vouchers.
If you receive cheques, participate in the Scrip Dividend Programme or have made a specific request to the Registrar, you will receive a tax voucher quarterly.
HM Revenue and Customs recommends that individuals retain tax vouchers for at least 22 months from the end of the tax year to which they relate, whilst self-employed individuals should retain tax vouchers for six years.
What if I have lost my share certificate, dividend cheque or tax voucher?
If your certificates are lost, stolen or destroyed, you should contact Capita Registrars as soon as you can. Capita Registrars will arrange for you to complete an indemnity covering the company for any loss arising from a dispute over who owns the shares and you may be charged for this if the value of the shares is over a certain limit. Once this is done, Capita Registrars will send you a duplicate certificate.
If you lose a dividend cheque you should contact Capita Registrars immediately, confirming which payment has been lost. They will then arrange for the cheque to be stopped and issue you with a duplicate free of charge. Dividend cheques are currently valid for one year from the date of payment.
If you lose a tax voucher you should contact Capita Registrars, confirming which tax voucher has been lost. A duplicate will be issued upon payment of an administration charge.
If you lose a dividend cheque you should contact Capita Registrars immediately, confirming which payment has been lost. They will then arrange for the cheque to be stopped and issue you with a duplicate free of charge. Dividend cheques are currently valid for one year from the date of payment.
If you lose a tax voucher you should contact Capita Registrars, confirming which tax voucher has been lost. A duplicate will be issued upon payment of an administration charge.
ADS holders
What do I do if I have any questions about the dividend or need help?
Please read the frequently asked questions and answers. If you have any additional queries or require further information please contact JPMorgan Chase.
JPMorgan Chase NA
Tel: 1-877-638-5672 (toll-free in the US and Canada)
Tel: 1-651-306-4383 (outside US and Canada)
Tel: 1-651-453-2133 (for the hearing impaired)
JPMorgan Chase NA
Tel: 1-877-638-5672 (toll-free in the US and Canada)
Tel: 1-651-306-4383 (outside US and Canada)
Tel: 1-651-453-2133 (for the hearing impaired)
How can I receive dividend payments directly to my bank?
If you decide to receive cash dividends, it is strongly recommended that they are paid direct to your bank or building society account. This avoids the risk of cheques being lost in the post, and means your dividend will be in your account on the dividend payment date.
The easiest, quickest and most secure way to provide your bank details is to register for an adr.com account and provide your bank account details online. Alternatively please contact JPMorgan Chase to request a direct deposit dividend form.
The easiest, quickest and most secure way to provide your bank details is to register for an adr.com account and provide your bank account details online. Alternatively please contact JPMorgan Chase to request a direct deposit dividend form.
What happens if I lose my dividend check or tax form
You should notify JPMorgan Chase if you lose your dividend check. JPMorgan Chase will place a stop on your check and re-issue another one to you at no cost. You can contact JPMorgan Chase to request a copy of your most recent US tax form starting after January 31 for the previous tax year.
If you should have any questions specific to your 1099 tax form or pertaining to your BP shareholder account, please contact JPMorgan Chase.
If you should have any questions specific to your 1099 tax form or pertaining to your BP shareholder account, please contact JPMorgan Chase.
What do I do if I have lost contact with BP and haven’t received my dividend payments?
Please get in touch with JPMorgan Chase and provide your up to date address details. JPMorgan Chase will be able to advise you on the process of reissuing any unclaimed dividends.
Will dividends paid on BP ADSs qualify as ‘qualified dividend income’ under the Jobs & Growth Tax Relief Reconciliation Act of 2003 ('Act')?
In general, BP is a Qualified Foreign Corporation under the requirements of the Act, i.e. a corporation that is eligible for the benefits under a comprehensive income tax treaty with the US and whose stock is readily tradable on an established US securities market. However, there are certain exceptions which may impact specific ADS holder accounts. Because BP does not provide tax advice, we suggest you contact a qualified tax consultant to review your specific situation and the impact of the Act.
What is the current Treaty arrangement between the US and UK relating to the tax treatment of dividends?
The US and UK signed a Tax Treaty that entered into force on March 31, 2003. Under the new Tax Treaty, the previously deemed tax credit and offsetting withholding tax have been eliminated for dividends paid after May 1, 2003. In the case of shareholders who elected a one year phase-in period, the deemed tax credit and offsetting withholding tax continued to apply to dividends paid before May 1, 2004.
As a Canadian resident, how will I receive dividends?
During the course of 2008, BP voluntarily delisted from the Toronto Stock Exchange due to extremely low activity volume and to streamline its share listing arrangements. One result of the change was to discontinue the provision of a separate Canadian transfer agent and cease Canadian dollar dividend payments, effective 2009. As a result, all of BP’s ADS dividends are paid in US dollars.
Related links
Details of the current dividend payment timetable
The latest UK regulatory information announcements
