CALGARY, AB - Crescent Point Energy Corp. (TSX: NYSE:CPG) and (NYSE: CPG), a Canadian oil and gas company, have announced a 15 percent increase in their quarterly cash base dividend. The new dividend of $0.115 per share is payable on April 1, 2024, to shareholders who are on record as of March 15, 2024.
This increase is a part of Crescent Point's capital return strategy, which aims to distribute 60 percent of the company's annual excess cash flow back to its shareholders. The dividends are designed to be tax-advantageous, qualifying as "eligible dividends" for Canadian tax purposes and as "qualified dividends" for U.S. tax purposes.
Crescent Point's shares are publicly traded on both the Toronto and New York stock exchanges. The company has emphasized that this dividend adjustment reflects its commitment to delivering shareholder value while maintaining a robust return of capital framework.
The information in this article is based on a press release statement by Crescent Point Energy Corp.
InvestingPro Insights
Crescent Point Energy Corp. (TSX: CPG) (NYSE: CPG) has recently made headlines with its announcement of a 15 percent increase in its quarterly cash base dividend. This decision aligns with the company's history of maintaining and raising dividends, as evidenced by the InvestingPro Tips which highlight that Crescent Point has raised its dividend for 3 consecutive years and has maintained dividend payments for 21 consecutive years. This consistency in returning value to shareholders is a significant aspect of the company's appeal to investors.
In terms of financial health and performance, InvestingPro Data shows that Crescent Point has a market capitalization of $4.47 billion USD. The company's revenue over the last twelve months, as of Q3 2023, stands at approximately $2.66 billion USD, with a revenue growth of 2.91%. This growth is indicative of the company's ability to increase its earnings, which supports its dividend payout strategy. Additionally, the dividend yield as of the time of reporting is 5.02%, which is attractive to income-focused investors.
Investors interested in Crescent Point's stock stability will find the InvestingPro Tips insightful, as they indicate that while the stock generally trades with low price volatility, there have also been periods where stock price movements are quite volatile. This could be an important consideration for investors looking for a balance between stability and growth potential.
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