Why Dividend Cuts Matter In Goldman’s ‘New Oil Order’

Following last week’s news that ConocoPhillips COP 0.65% slashed its dividend by about two-thirds, Goldman Sachs analyst Brian Singer this week released a new report discussing other dividend payers that could follow Conoco’s lead and what dividend cuts mean for the market in terms of stock differentiation.

“We believe the importance of the dividend to investors relative to the differentiation in asset base is the key reason for the variation in production reactions,” Singer explained.

Following ConocoPhillips’ massive selloff after announcing its dividend cut, identifying the other potential cuts on the horizon is extremely important for dividend investors.

Other Possible Names

In terms of oil majors, Singer sees…

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