The board of directors of
Anadarko Petroleum Corp.
) announced an impressive 50% hike in the quarterly dividend rate.
The new quarterly dividend comes to 27 cents per share, up from 18
cents per share in the prior quarter. The dividend is payable on
Jun 25, 2014 to shareholders of record at the close of business on
Jun 11, 2014.
On an annualized basis, Anadarko Petroleum's dividend rate will
come to $1.08 per share. The new hike comes on the heels of
Anadarko Petroleum's strong performance in the first quarter 2014
thanks to the upbeat production results from its U.S. onshore
This is the second consecutive dividend hike by the company in less
than a year. Anadarko Petroleum's commitment to add value to
shareholders is reflected in its stable dividend payment history in
the past four years. In Aug 2013, the company doubled its quarterly
dividend rate to 18 cents from 9 cents.
Meanwhile, the current hike does not come as a surprise given the
company's robust financial position aided by cash balance growth of
60.2% to nearly $5.9 billion as of Mar 31, 2014 from $3.7 billion
at year-end 2013. This will help Anadarko Petroleum to fund its
The coming quarters could see Anadarko Petroleum riding high on the
current shale boom in the U.S. The company's premium shale
properties, the Eagleford and Wattenberg, will likely prove to be
the key production drivers. In addition, advancement of the Lucius
prospect in the deepwater Gulf of Mexico will add to the positive
Currently, Anadarko Petroleum carries a Zacks Rank #3 (Hold). Other
better-ranked oil and gas stocks include
Matador Resources Company
RSP Permian, Inc.
), each carrying a Zacks Rank #1 (Strong Buy).
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ANADARKO PETROL (APC): Free Stock Analysis
ENCANA CORP (ECA): Free Stock Analysis Report
MATADOR RESOURC (MTDR): Free Stock Analysis
RSP PERMIAN INC (RSPP): Free Stock Analysis
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