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Re: ilpapa post# 9525

Wednesday, 01/21/2015 9:49:32 AM

Wednesday, January 21, 2015 9:49:32 AM

Post# of 29422
BHP’s has many large investors who own the shares for the dividend (which is somewhat illogical for a commodities company). Thus, when commodity prices fall, BHP has to step up production volume to generate the cash flow to cover the dividend, which is the opposite of what they ought to be doing based on economic principles.

p.s. BHP is planning to split into two companies sometime in 2015.

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