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Northern Oil Approves Dividend, Names Nicholas O'Grady as CEO

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Northern Oil and Gas, Inc. (NOG - Free Report) recently announced the initiation of a quarterly dividend, which is likely to begin in April next year. This shareholder-friendly move puts the stock on offer to dividend-seeking investors and is expected to boost the sentiments of existing stockholders. The company’s board of directors cleared a dividend of 1.5 cents per share on its common stock, reflecting a 2.9% annualized dividend yield, per the company’s closing price as of Dec 17.

Headquartered in Wayzata, MN, this oil and gas E&P company’s declaration of its first cash dividend since Northern Oil’s business foundation in 2006 reflects its willingness to return funds to its shareholders. Northern Oil’s board chairman Bahram Akradi believes that notwithstanding the stock price appreciation, strength in its financial assets will help the company hike its dividend, thereby maintaining a similar target yield over time. As it is, the company boasts a strong financial position with low per-unit costs and attractive hedges.

In a separate press release, management named Northern Oil’s current president and chief financial officer Nicholas O’Grady as its new CEO. Brandon Elliott, who will step down by this year-end, will delegate his duties officially to his successor on Jan 1, 2020.

Apart from this Zacks Rank #4 (Sell) stock, several energy sector entities notified dividend initiation and hikes in 2019. While E&P player Parsley Energy’s quarterly cash dividend payout to its shareholders is on track, the major refining and marketing company Phillips 66 (PSX - Free Report) rewarded its shareholders with a quarterly dividend increase. Another upstream energy company Noble Energy, Inc. bumped up its quarterly dividend payment by 9% at April-end. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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