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5 Oil & Gas Stocks That Recently Announced Dividend Hikes
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The Energy sector is notorious for its inherent unpredictability, marked by sudden positive surges and downturns. While significant price swings have always characterized investments in oil and natural gas, the degree of uncertainty has markedly risen in recent years, especially following the aftermath of the COVID-19 pandemic.
In such a volatile energy market context, a dividend increase serves as a signal from management of confidence in the company's future prospects. By elevating the dividend, management is essentially expressing the belief that forthcoming cash flows will be sufficient to cover the increased dividend.
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. The only energy component of the Dow Jones Industrial Average, San Ramon, CA-based Chevron is fully integrated, meaning it participates in every aspect related to energy – from oil production to refining and marketing.
CVX said on Feb 2 it will pay out a cash dividend of $1.63 per share of record on Feb 16. The company’s dividend represents a 8% increase to its quarterly dividend rate, providing an annualized dividend of $6.52 per share. At yesterday’s closing price, investors get a dividend yield of 4.3%.
Next up is The Williams Companies. Founded in 1908, the Tulsa, OK-based firm is a premier energy infrastructure provider in North America. The Zacks Rank #3 (Hold) company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids.
Late last month, WMB increased the quarterly dividend by 6.1%. The company will pay a dividend of 47.50 cents per share against 44.75 cents last quarter. Calculating a 5.5% annualized yield, this payout increase comes into effect with the one recorded on Mar 8.
Magnolia Oil & Gas is another energy operator that deserves mention. It is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Houston, TX, the firm is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas.
MGY yesterday increased the quarterly dividend by 13% from 11.5 cents to 13 cents. This payout increase comes into effect with the dividend recorded on Feb 16. At the current share price, Magnolia offers a dividend yield of 2.6%.
Then there is HighPeak Energy. The Fort Worth, TX-based energy firm concentrates on extracting unconventional oil and natural gas deposits, primarily in Howard County of the Midland Basin. It was established in 2020 by merging HighPeak Energy and Pure Acquisition Corporation, a special-purpose acquisition company.
HPK proposed a quarterly dividend of 4 cents, taking the full-year payout to 16 cents, up 60% compared with the previous dividend. The new dividend, which offers a yield of 1.2%, will be paid to stockholders of record on Mar 1.
Finally, we have Shell — one of the primary oil supermajors, or a group of U.S. and Europe-based big energy multinationals with worldwide operations. The company’s long-term strategy revolves around LNG. This London-based firm bought BG Group for $50 billion in 2016 to become the world’s largest producer and shipper of LNG.
SHEL said last week it paid out a fourth-quarter cash dividend of 34.40 cents per share. The company’s dividend represents a 4% increase to its quarterly dividend rate, providing an annualized dividend of $1.376 per share. With each ADS representing two ordinary shares, at yesterday’s closing price, investors get a dividend yield of 4.4%.
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5 Oil & Gas Stocks That Recently Announced Dividend Hikes
The Energy sector is notorious for its inherent unpredictability, marked by sudden positive surges and downturns. While significant price swings have always characterized investments in oil and natural gas, the degree of uncertainty has markedly risen in recent years, especially following the aftermath of the COVID-19 pandemic.
In such a volatile energy market context, a dividend increase serves as a signal from management of confidence in the company's future prospects. By elevating the dividend, management is essentially expressing the belief that forthcoming cash flows will be sufficient to cover the increased dividend.
Now, let's examine five energy companies — Chevron (CVX - Free Report) , The Williams Companies (WMB - Free Report) , Magnolia Oil & Gas (MGY - Free Report) , HighPeak Energy (HPK - Free Report) and Shell (SHEL - Free Report) — that recently raised their dividends.
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. The only energy component of the Dow Jones Industrial Average, San Ramon, CA-based Chevron is fully integrated, meaning it participates in every aspect related to energy – from oil production to refining and marketing.
CVX said on Feb 2 it will pay out a cash dividend of $1.63 per share of record on Feb 16. The company’s dividend represents a 8% increase to its quarterly dividend rate, providing an annualized dividend of $6.52 per share. At yesterday’s closing price, investors get a dividend yield of 4.3%.
Next up is The Williams Companies. Founded in 1908, the Tulsa, OK-based firm is a premier energy infrastructure provider in North America. The Zacks Rank #3 (Hold) company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Late last month, WMB increased the quarterly dividend by 6.1%. The company will pay a dividend of 47.50 cents per share against 44.75 cents last quarter. Calculating a 5.5% annualized yield, this payout increase comes into effect with the one recorded on Mar 8.
Magnolia Oil & Gas is another energy operator that deserves mention. It is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Houston, TX, the firm is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas.
MGY yesterday increased the quarterly dividend by 13% from 11.5 cents to 13 cents. This payout increase comes into effect with the dividend recorded on Feb 16. At the current share price, Magnolia offers a dividend yield of 2.6%.
Then there is HighPeak Energy. The Fort Worth, TX-based energy firm concentrates on extracting unconventional oil and natural gas deposits, primarily in Howard County of the Midland Basin. It was established in 2020 by merging HighPeak Energy and Pure Acquisition Corporation, a special-purpose acquisition company.
HPK proposed a quarterly dividend of 4 cents, taking the full-year payout to 16 cents, up 60% compared with the previous dividend. The new dividend, which offers a yield of 1.2%, will be paid to stockholders of record on Mar 1.
Finally, we have Shell — one of the primary oil supermajors, or a group of U.S. and Europe-based big energy multinationals with worldwide operations. The company’s long-term strategy revolves around LNG. This London-based firm bought BG Group for $50 billion in 2016 to become the world’s largest producer and shipper of LNG.
SHEL said last week it paid out a fourth-quarter cash dividend of 34.40 cents per share. The company’s dividend represents a 4% increase to its quarterly dividend rate, providing an annualized dividend of $1.376 per share. With each ADS representing two ordinary shares, at yesterday’s closing price, investors get a dividend yield of 4.4%.