The story is getting worse and worse for BHP Billiton Limited (ASX: BHP) shareholders.
What was once considered by many as being one of Australia's safest companies is now threatening to fall below $18 a share. BHP Billiton's share price is down 2.6% today and nearly 34% since the beginning of the year, while the shares are trading at their lowest price since 2008.
Further falls are possible
Today's fall can be attributed to further declines in commodity prices last week, together with an update from BHP Billiton regarding the recent disaster at Samarco, Brazil.
It said the Brazilian Federal Government and certain State governments want to commence legal proceedings against Samarco, Vale and BHP Billiton (Vale and BHP Billiton are the joint owners of Samarco) to the tune of BRL 20 billion (approximately US$5.2 billion) for environmental recovery and compensation.
With tighter profits and cash flows, this could certainly be the event that leads to BHP Billiton scrapping its progressive dividend policy.
