HOUSTON - NOV Inc. (NYSE: NOV), a provider of technology solutions for the energy industry, has announced an increase in its quarterly cash dividend.
The company's board of directors declared a dividend of $0.075 per share of common stock, which marks a 50% increase from previous dividends. This new dividend is payable on June 28, 2024, to stockholders of record as of June 14, 2024.
The increase is in line with NOV's capital return strategy that was introduced on April 25, 2024. The company has committed to returning at least 50 percent of its Excess Free Cash Flow to its shareholders.
Excess Free Cash Flow is defined by the company as cash flow from operations minus capital expenditures and other investments, including acquisitions. NOV aims to achieve this through a combination of regular quarterly dividends, potential stock buybacks, and an annual supplemental dividend to adjust the total shareholder return on an annual basis.
This announcement is based on a press release statement from NOV Inc.
InvestingPro Insights
Following the recent announcement by NOV Inc. (NYSE: NOV) regarding the increase in its quarterly cash dividend, current metrics and analyst insights from InvestingPro offer a deeper look into the company's financial health and stock performance. The company's market capitalization stands at a robust $7.46 billion, and it has a price-to-earnings (P/E) ratio of 7.5, which, when adjusted for the last twelve months as of Q1 2024, shows a slight decrease to 7.24. This may indicate that the company is reasonably valued compared to its earnings. NOV's revenue has also seen a healthy growth of 14.7% over the last twelve months as of Q1 2024, suggesting a strong business performance.
Investors may find comfort in NOV's stability as the company has been able to maintain dividend payments for 16 consecutive years, an impressive feat that underscores its commitment to shareholder returns. This is further supported by the company's ability to cover its short-term obligations, with liquid assets exceeding short-term liabilities. Additionally, the InvestingPro Tips highlight that NOV's stock generally trades with low price volatility, which can appeal to investors looking for a more stable investment in the energy sector.
For those looking to delve deeper into NOV's financials and stock performance, there are 6 additional InvestingPro Tips available that can provide more nuanced insights. Interested readers can access these tips and more detailed analysis at https://www.investing.com/pro/NOV, and by using the coupon code PRONEWS24, they can enjoy an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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