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Independent natural gas producer Cabot Oil & Gas (NYSE: COG ) announced yesterday it would split its stock 2-for-1 that would be issued to shareholders in the form of a stock dividend. The board of directors said the additional shares will be distributed on August 14 to shareholders of record on August 6.
The board also announced its second-quarter dividend of $0.02 per share pre-split would be doubled to $0.04 per share. The quarterly payout will be paid on August 23 to shareholders of record as of the close of business on August 6.
Now that the stock will have approximately 422 million shares outstanding after the split ,which will increase its liquidity, Cabot Chairman, President, and CEO Dan O. Dinges said, "The Board's decision to double the dividend was due to the Company's long-term prospects for free cash flow generation."
The regular dividend payment equates to a $0.16-per-share annual dividend, pre-split, yielding 0.2% based on the closing price today of Cabot Oil & Gas's stock.