Cabot’s market performance
Cabot Oil & Gas (COG) recently declared a quarterly dividend of $0.02 per share, or $0.08 annualized. The dividend represented an annual yield of 0.2% and year-to-date (or YTD) returns of 18%.
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP), an exchange-traded fund (or ETF) that targets the energy sector, has an annualized dividend of $0.70, representing a yield of 0.65% and YTD returns of 20.53%.
In comparison, the S&P 500 Index (SPX), with a yield of 1.9 % and YTD returns of 7.78%, has an annualized dividend of $1.50.
Why COG and XOP have had high rates of returns
Both COG and XOP have relatively had high rates of YTD returns. This is because the oil and energy sector has seen energy prices being pushed up due to geopolitical issues. This crisis in the Middle East has resulted in the out performance of energy stocks and ETFs such as COG, XOP, the Energy Select Sector SPDR (XLE), and the iShares U.S. Energy ETF (IYE).
Despite COG’s recent negative stock market movement, the fact that it was able to hold its own and sustain significant levels of production should ensure that it maintains relatively high stock market returns.
Continue reading the next section in this series to see how COG measures up to its competitors.