Coterra Energy Inc. (NYSE:CTRA) has announced that it will pay a dividend of $0.21 per share on the 29th of August. Including this payment, the dividend yield on the stock will be 3.6%, which is a modest boost for shareholders’ returns.
Check out our latest analysis for Coterra Energy
Coterra Energy’s Payment Has Solid Earnings Coverage
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. The last dividend was quite easily covered by Coterra Energy’s earnings. This means that a large portion of its earnings are being retained to grow the business.
Over the next year, EPS is forecast to expand by 96.4%. Assuming the dividend continues along recent trends, we think the payout ratio could be 31% by next year, which is in a pretty sustainable range.
Dividend Volatility
While the company has been paying a dividend for a long time, it has cut the…
