Cabot Oil & Gas Corp (COG) will raise its quarterly dividend by 10 percent to 11 cents per share in 2021. Last year the dividend was hiked by 42.9 percent. In 2019 the natural gas producer already hiked its dividend by 40.0 percent.
The next dividend will be paid on May 12, 2021 to all shareholders of record as of the close of business on May 13, 2021. The new annual rate of 44 cents yields 2.6% at a stock price of $16.67. The next ex-dividend date for COG is May 12, 2021.
From the company's press release dated April 29, 2021: "The increase in the quarterly base dividend highlights our confidence in the Company's sustainable free cash flow generation throughout the natural gas price cycle, which is underpinned by our long-lived inventory of low-cost natural gas assets in the core of the Marcellus Shale in northeast Pennsylvania," stated Dinges. "Based on the current natural gas price outlook for 2021, we expect to deliver excess free cash flow after our minimum capital return target of 50 percent of annual free cash flow from our 'base plus supplemental' dividend approach and our debt repayment. This excess free cash flow is anticipated to be earmarked for additional capital returns, including opportunistic share repurchases or incremental supplemental dividends."
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties exclusively in the continental United States. The company’s focused operations are centered around developing its natural gas resources in Pennsylvania. Cabot Oil & Gas Corporation is headquartered in Houston, Texas.