Linn Energy cuts dividend by 56.9%

The monthly distribution will be cut from $0.2416 to $0.10420 per share by Linn Energy (ticker LINE).

The new annual distribution of $1.25 gives the stock an indicated dividend yield of 11.1% at a stock price of $11.24 per share.

"After careful consideration, LINN's senior management proposed and the Board of Directors approved a 2015 budget that contemplates a significantly lower current crude oil price than in 2014. In order to solidify the Company's financial position and regain a useful cost of capital, we have reduced the oil and natural gas capital budget and distribution while balancing cash flow and spending," said Mark E. Ellis, Chairman, President and Chief Executive Officer.