Ovintiv Inc. Plans Quarterly Dividend of $0.30 (NYSE:OVV)

Key Points

• Ovintiv declared a quarterly dividend of $0.30 per share, payable on September 29 to shareholders of record on September 15. The stock’s annualized dividend is $1.20, implying a yield of about 2.0%.
• The company has increased its dividend for four consecutive years and maintains a relatively low payout ratio of 21.7%, suggesting the dividend is well covered by earnings. Analysts expect Ovintiv to continue covering the payout next year as well.
• Ovintiv recently reported EPS of $1.74, below analyst expectations, but revenue came in at $3.01 billion, above estimates. Wall Street currently rates the stock a Moderate Buy with an average price target of about $65.63.

Ovintiv Inc. (NYSE:OVV - Get Free Report) declared a quarterly dividend on Thursday, July 23rd. Stockholders of record on Tuesday, September 15th will be given a dividend of 0.30 per share on Tuesday, September 29th. This represents a c) dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Tuesday, September 15th.

Ovintiv has raised its dividend by an average of 0.2%annually over the last three years and has increased its dividend annually for the last 4 consecutive years. Ovintiv has a dividend payout ratio of 21.7% meaning its dividend is sufficiently covered by earnings. Analysts expect Ovintiv to earn $5.72 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 21.0%.

Ovintiv Stock Up 1.5%

Shares of NYSE:OVV opened at $61.41 on Friday. The business has a 50-day moving average price of $56.31 and a 200 day moving average price of $53.03. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $17.26 billion, a price-to-earnings ratio of 19.81 and a beta of 0.53. Ovintiv has a 12-month low of $35.47 and a 12-month high of $63.46.

Ovintiv (NYSE:OVV - Get Free Report) last posted its earnings results on Thursday, July 23rd. The company reported $1.74 EPS for the quarter, missing analysts' consensus estimates of $1.94 by ($0.20). Ovintiv had a net margin of 8.51% and a return on equity of 13.14%. The company had revenue of $3.01 billion during the quarter, compared to analyst estimates of $2.37 billion. Sell-side analysts expect that Ovintiv will post 7.08 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on OVV. UBS Group reduced their price target on shares of Ovintiv from $76.00 to $75.00 and set a "buy" rating on the stock in a research note on Thursday, April 9th. Bank of America boosted their target price on Ovintiv from $63.00 to $68.00 and gave the company a "buy" rating in a research report on Thursday, April 2nd. Mizuho raised their price target on Ovintiv from $69.00 to $75.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 27th. Zacks Research cut Ovintiv from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Finally, Morgan Stanley lowered their target price on Ovintiv from $68.00 to $65.00 and set an "equal weight" rating for the company in a report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $65.63.

Ovintiv Company Profile

Ovintiv Inc is a North American energy company focused on the exploration, development and production of oil, natural gas and natural gas liquids. Formerly known as Encana Corporation, the company rebranded as Ovintiv in January 2020 and established its headquarters in Denver, Colorado. Ovintiv's upstream portfolio spans multiple unconventional resource plays, reflecting a strategy centered on high-return projects and disciplined capital allocation.

The company's core business activities include the acquisition and development of acreage in major shale basins across the United States and Canada.

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