Cenovus Energy Inc (NYSE:CVE) to Issue Quarterly Dividend of C$0.22

Key Points

• Cenovus declared a quarterly dividend of C$0.22 per share, payable June 30 to shareholders of record June 15, marking a 10% increase from the prior quarterly payout and an annualized yield of 3.0%.
• The dividend appears supported by earnings: Cenovus has a current payout ratio of 55.2% and has raised the dividend each year for four years; analysts forecast ~$2.06 EPS next year, implying an expected future payout ratio near 28.2% on the company’s stated annual dividend.
• Shares recently traded around $29.03; the company has a market cap of $54.44 billion, a P/E of about 19, and a 52‑week range of $11.60–$30.84.

Cenovus Energy Inc (NYSE:CVE - Get Free Report) TSE: CVE declared a quarterly dividend on Wednesday, May 6th. Shareholders of record on Monday, June 15th will be paid a dividend of 0.22 per share by the oil and gas company on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Monday, June 15th. This is a 10.0% increase from Cenovus Energy's previous quarterly dividend of $0.20.

Cenovus Energy has increased its dividend payment by an average of 0.6%per year over the last three years and has increased its dividend every year for the last 4 years. Cenovus Energy has a payout ratio of 55.2% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Cenovus Energy to earn $2.06 per share next year, which means the company should continue to be able to cover its $0.58 annual dividend with an expected future payout ratio of 28.2%.

Cenovus Energy Stock Performance

Shares of CVE stock traded down $1.42 during midday trading on Wednesday, hitting $29.03. The company had a trading volume of 18,602,710 shares, compared to its average volume of 13,928,051. The company's 50 day simple moving average is $25.08 and its 200 day simple moving average is $20.58. Cenovus Energy has a 52-week low of $11.60 and a 52-week high of $30.84. The stock has a market cap of $54.44 billion, a price-to-earnings ratio of 18.98 and a beta of 0.37. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.57 and a quick ratio of 1.04.

Cenovus Energy (NYSE:CVE - Get Free Report) TSE: CVE last announced its earnings results on Thursday, February 19th. The oil and gas company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.08. Cenovus Energy had a return on equity of 13.25% and a net margin of 7.92%.The company had revenue of $9.44 billion for the quarter, compared to the consensus estimate of $10.89 billion. During the same period last year, the business posted $0.07 EPS. Research analysts anticipate that Cenovus Energy will post 2.28 earnings per share for the current fiscal year.

About Cenovus Energy

Cenovus Energy Inc is a Canadian integrated energy company engaged in the exploration, development and production of crude oil, natural gas liquids and natural gas, together with downstream refining and marketing activities. Headquartered in Calgary, Alberta, Cenovus operates a mix of oil sands thermal and dilbit assets, conventional oil and gas properties, and owns refining and midstream assets designed to move and process hydrocarbons into finished petroleum products for commercial markets.

The company was originally formed as a spin‑off from Encana Corporation in 2009 and has grown through organic development and strategic acquisitions.

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