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Image courtesy of Anadarko Petroleum.

Texas-based Anadarko Petroleum is mulling a cut to its dividend as falling share prices pushes its yield up to a historical high.

According to Reuters, the company will discuss cutting its dividend at its board meeting next week in response to its yield climbing to about 3 percent, making it among the highest yields of the companies listed on the S&P 500.

Shares of Anadarko were trading at $41.07 near noon on Wednesday, a nearly 50 percent year-over-year drop and down from a high of about $112 per share in August 2014.

“As we look at the yield associated with our common stock at 3 percent, that’s historically high for us. So we look forward to discussing that with our Board and I believe those are the most important variables in the near term that we can address,” Anadarko CEO Al Walker said according to an investor call transcript provided by The Street.

Anadarko currently pays out a quarterly dividend of $0.27 and its dividend program costs the company about $550 million annually, Reuters said.

Anadarko said Tuesday that it may slash its 2016 budget by 50 percent after reporting a $1.25 billion fourth quarter net loss.

The company reported a fourth quarter net loss attributable to common stockholders of $1.250 billion, or $2.45 per diluted share,  including certain items typically excluded by the investment community in published estimates.

Anadarko said these items increased the net loss by $954 million on an after-tax basis.

The company reported a net loss attributable to common stockholders of $6.69 billion for the full year of 2015, or $13.18 per diluted share.

Walker said the company anticipates recommending an initial 2016 budget of $2.8 billion to its board, a nearly 50 percent drop from its actual 2015 capital investments.

“As we consider capital allocation for 2016, greater market dislocation appears likely, and the need to again materially lower our capital spending, while continuing to pursue value creation and  preservation, is our best course of action,” Walker added.