Cabot Oil & Gas Splits Stock 2-for-1, Doubles Dividend
Independent natural gas producer Cabot Oil & Gas announced yesterday it would split its stock 2-for-1 that would be issued to shareholders in the form of a stock dividend. The board of directors said the additional shares will be distributed on August 14 to shareholders of record on August 6.
The board also announced its second-quarter dividend of $0.02 per share pre-split would be doubled to $0.04 per share. The quarterly payout will be paid on August 23 to shareholders of record as of the close of business on August 6.
Now that the stock will have approximately 422 million shares outstanding after the split ,which will increase its liquidity, Cabot Chairman, President, and CEO Dan O. Dinges said, "The Board's decision to double the dividend was due to the Company's long-term prospects for free cash flow generation."
The regular dividend payment equates to a $0.16-per-share annual dividend, pre-split, yielding 0.2% based on the closing price today of Cabot Oil & Gas's stock.
The article Cabot Oil & Gas Splits Stock 2-for-1, Doubles Dividend originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.