Dividends and dividend yields
Pioneer Natural Resources (PXD) paid its last dividend on April 12, 2016. The dividend payment for 1Q16 was $0.04 per share on its common stock. For the trailing 12 months, PXD has paid total dividends of $0.08 per share on its common stock.
As of June 28, 2016, the company’s dividend yield, which measures the amount of cash flow an investor can get for each dollar invested in an equity position, stood at ~0.06%.
The company’s dividend history
Since 1Q11, Pioneer Natural Resources has paid a dividend of $0.04 per share on its common stock in odd quarters of every year. As you can see in the above graph, the company’s dividend yield increased from 3Q14 to 3Q15, mainly due to falling stock prices. When its stock price fell, its dividend yield increased. The company’s five-year average dividend yield is ~0.06%.
PXD’s future dividend
Pioneer Natural Resources’ next dividend payment of $0.04 per share is due in 3Q16. The indicated annual dividend rate is $0.08 per share.
Other upstream players
Below are the trailing 12-month dividend yields for other upstream companies as of June 28, 2016:
- Noble Energy (NBL): 1.7%
- EOG Resources (EOG): 0.9%
- Marathon Oil (MRO): 2.6%
- Devon Energy (DVN): 2.3%
Due to the steep downward trend in energy prices, many upstream companies are cutting back on dividends. In February, Energen (EGN) announced that it has discontinued its cash dividend on common stock in response to a significant decline in energy prices.
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies. The First Trust ISE-Revere Natural Gas ETF (FCG) invests in natural gas producers.
Next, we’ll analyze Pioneer Natural Resources’ enterprise multiple.