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Investors looking to capture the upcoming dividend from Coterra Energy Inc. (NYSE: NYSE:) should take note that the company’s stock will be trading ex-dividend starting November 15th. Shareholders who purchase the stock after this date will not be eligible for the next scheduled payment of $0.20 per share on November 30th. This latest dividend continues Coterra Energy’s pattern of rewarding investors, following a total distribution of $1.17 per share over the past year, which translates to a yield of approximately 4.4% against its current stock price of $26.8.
The dividends issued by Coterra Energy have been comfortably funded by its earnings and free cash flow, with payout ratios of 56% and 89% respectively. These figures are generally considered safe margins for sustaining dividend payments; however, they also suggest limited room for growth unless the company’s earnings expand.
Coterra Energy’s financial health appears robust, supported by a remarkable earnings growth rate of 69% per year over the past five years. This surge in earnings has fueled consistent increases in dividend payouts, averaging around 40% per annum over the last decade.
While the company’s track record may be appealing, investors are cautioned to look beyond Coterra Energy’s attractive performance before making investment decisions. It’s important to recognize that despite a solid history of earnings and dividend growth, potential risks such as a significant earnings decline could lead to reduced dividends in the future.
For those considering adding dividend stocks to their portfolios, it is advisable to explore a variety of options. A broad list of high-yield dividend stocks is available for investors seeking alternatives with potentially better returns or different risk profiles.
InvestingPro Insights
In light of the article’s focus on Coterra Energy’s dividend performance, it’s worth noting a couple of InvestingPro Tips. First, Coterra Energy has raised its dividend for six consecutive years, demonstrating a consistent commitment to rewarding its shareholders. Additionally, the company’s cash flows can sufficiently cover interest payments, which is a positive indicator of financial health.
Turning to InvestingPro’s real-time data, Coterra Energy boasts a market capitalization of $20.3 billion and a P/E ratio of 9.24, which is relatively low compared to the industry average. Over the last twelve months as of Q3 2023, the company’s revenue was $6394 million, despite a decline of 31.28% during the same period. However, it’s worth noting that the company’s gross profit margin remained high at 75.6%.
For those seeking more comprehensive insights, InvestingPro offers a wealth of additional tips and data. These include up-to-date analyst predictions, detailed financial metrics, and a range of other valuable information to help investors make informed decisions.
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