Chesapeake Energy sorely disappointed investors with its decision to eliminate its dividend. The big question now is which company could be next to cut.
According to trader Andrew Keene of Keene on the Market, options prices imply that British energy giant BP will cut its dividend by 2016.
By some measures, BP's dividend yield of 6.2 percent does not appear a comfortable one. Analysts only expect the company to earn $2.41 per share in 2015, according to FactSet, a penny more than its annualized dividend yield.
On the other hand, BP is expected to generate cash flow per share of $7.40.
"BP's dividend is safe," declared Oppenheimer analyst Fadel Gheit, pointing to the company's cash flow and the cash on its balance sheet.