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Discussion Starter · #22 ·

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Discussion Starter · #23 ·
Q4 - 2021 - Quarterly Reports - Financials - Invest - Cameco

  • 50% increase to 2022 dividend announced: As a result of our deliberate actions and conservative financial management we have been and continue to be resilient. With a strong balance sheet, improving fundamentals for our business, a growing contract portfolio, and our decision to prepare McArthur River/Key Lake to be operationally ready, we have line of sight to a significant improvement in our future earnings and cash flow. Therefore, for 2022, we are increasing our annual dividend. An annual dividend of $0.12 per common share has been declared, payable on December 15, 2022 to shareholders of record on November 30, 2022.

Shareholders will have to wait to the end of the year for this one.
 

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Discussion Starter · #26 ·

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Whitecap Resources recently increased its dividend 33%, from $0.27 to $0.36 a year. Year over year, their dividend is up 110% and now yields about 3.5%.

Of course, Whitecap used to pay 6.25 cents a share monthly instead of 3 cents, but with current oil prices they actually could pay their pre-2015 dividend now and even increase it. Pretty good company that survived 3 major oil bear markets without causing permanent shareholder equity destruction.

New 4 year high today.
 

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CNQ increased its dividend 28% from .5875 to 0.75 a share. 21 years in a row they increased their dividend, through 5 major oil bear markets (2002, 2008, 2014, 2018, 2020). The dividend is 100% higher than pre-COVID, and CNQ is the only major oil company in the world trading at all time highs, including well above 2008.
 

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Discussion Starter · #33 ·

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TMX Money

Question on this type of announcement, do investors buy a stock like this on the announcement and make a few grand with both dividends say in a TFSA and sell shortly after for profit or does the stock share price usually adjust accordingly so in reality your no further ahead.
 

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TMX Money

Question on this type of announcement, do investors buy a stock like this on the announcement and make a few grand with both dividends say in a TFSA and sell shortly after for profit or does the stock share price usually adjust accordingly so in reality your no further ahead.
Wait for it…….wait for it….
 

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Discussion Starter · #36 ·
TMX Money

Question on this type of announcement, do investors buy a stock like this on the announcement and make a few grand with both dividends say in a TFSA and sell shortly after for profit or does the stock share price usually adjust accordingly so in reality your no further ahead.
I realize your question was more general but if you use this announcement as an example you can see what happened in the last month which covers the announcement and record date. This news is easy to price as the amounts and timelines are known. It's near impossible to turn a quick profit but the announcement of dividend increases in conjunction with a special dividend usually means the company is flush with cash. A financially sound company will tend to draw attention from other investors. I haven't looked closely at WTE.

Westshore Terminals Investment Corporation (WTE) | TSX Stock Price | TMX Money
 

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TMX Money

Question on this type of announcement, do investors buy a stock like this on the announcement and make a few grand with both dividends say in a TFSA and sell shortly after for profit or does the stock share price usually adjust accordingly so in reality your no further ahead.
WTE fell almost exactly by $1.50 on the ex-dividend date. WTE pays these special dividends all the time as the company has little interest in growing outside of their terminal in Vancouver and so just pays out its excess cash. So no chance to game the stock. In general though, I would say special dividends are generally positive and bring positive attention to a stock, especially if their underlying business is good and the stock is undervalued. Sometimes the stock price bump up on the announcement is more than the special dividend, but you would have to be in the stock prior to the announcement.

However, in this case, a few days after ex-dividend, WTE proceeded to jump to a new 52 week high, perhaps more connected to the long term outlook. Owning a major export terminal in Canada is a pretty profitable business these days, especially when commodity prices are high and your clients are flush with cash, and your competition is being widely sanctioned.
 

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Cenovus tripled its dividend, from 3.5 cents to 10.5 cents a share. They are now going to return 50% of FCF to shareholders until their debt reaches $4B, likely 3 quarters from now, and then they are going to return 100% of FCF. If they do, it would be a shareholder yield of 20%+ at current prices. Most of it will be share buybacks. $4B debt in a few quarters - who remembers when they paid $14 billion debt + $3B shares for ConocoPhillips's oil sands projects. Plus another $6-7B of Husky debt. Poof, gone.

This is only the beginning of a massive return of capital from oil and gas. 100% of FCF likely early next year. Wow.

 
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