With the break-up scheduled to occur on November 30, many investors have been asking what will happen to the dividend. Management has given guidance that on December 31,
both EnCana (Gas) and Cenovus (Oil) will each pay a dividend of $0.20. Therefore, if you hold both pieces of the company after the split your cash flow will be unaffected. The management teams of both companies have stated that dividend growth and an attractive current yield are priorities going forward. As for the 2010 Q1 dividend, that will be up to the Board of Directors of the new companies to decide.
Since its formation in 2002, EnCana has increased their dividend four times:
- 50% increase in June 2005
- 33% increase in June 2006
- 100% increase in March 2007
- 100% increase in March 2008
FYI – EnCana pays their dividend in US dollars.
1 comments:
EnCana was created though the merger of PanCanadian Energy Corporation (PCE) and Alberta Energy Company Ltd. (AEC) in April 2002.
Post a Comment