Hess Corporation HES has announced that it received authorization from the board of directors to increase its regular quarterly dividend.
The new dividend of 50 cents per share reflects an increase of 14.3% from the prior amount of 43.75 cents. The hiked dividend will be paid on Sept. 30 to common stockholders of record at the close of business on Sept. 16.
Merger With Chevron to Boost Cash Returns
Hess expects its shareholders to receive roughly four times higher quarterly dividends after its merger with ChevronCorporation CVX is completed. This reflects that superior cash returns await HES shareholders. With the completion of the deal, stockholders of HES are expected to own roughly 15% of Chevron – one of the largest integrated energy companies in the world.
The leading global independent exploration and production company is expecting annual synergies of roughly $1 billion within a year of the completion of the merger agreement.
Two Upstream Players With Attractive Dividends
ConocoPhillips COP, another large company in the upstream energy space, is committed to returning capital to its shareholders. From the fourth quarter of 2024, the company intends to raise its ordinary dividend by 34% to 78 cents per share.
EOG Resources Inc EOG is also a leading explorer and producer of oil and natural gas with a strong presence in prolific shale plays in the United States. The company also has a strong commitment to returning shareholders’ capital. EOG currently rewards investors with a dividend yield of 3%, higher than the 2.3% yield of the composite stocks belonging to the industry.
Despite these positives, Hess, ConocoPhillips and EOG Resources remain exposed to significant fluctuations in oil and gas prices, which can create uncertainty in their businesses during periods of low commodity prices. All three upstream players currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Chevron Corporation (CVX) : Free Stock Analysis Report
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EOG Resources, Inc. (EOG) : Free Stock Analysis Report
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