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Crescent Point Energy Corp (TSE:CPG): Dividend Is Coming In 7 Days, Should You Buy?

Investors who want to cash in on Crescent Point Energy Corp’s (TSX:CPG) upcoming dividend of CA$0.03 per share have only 7 days left to buy the shares before its ex-dividend date, 30 January 2018, in time for dividends payable on the 15 February 2018. Is this future income a persuasive enough catalyst for investors to think about Crescent Point Energy as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Crescent Point Energy

5 questions to ask before buying a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Is their annual yield among the top 25% of dividend payers?

  • Does it consistently pay out dividends without missing a payment of significantly cutting payout?

  • Has it increased its dividend per share amount over the past?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Will it be able to continue to payout at the current rate in the future?

TSX:CPG Historical Dividend Yield Jan 22nd 18
TSX:CPG Historical Dividend Yield Jan 22nd 18

Does Crescent Point Energy pass our checks?

The current payout ratio for CPG is negative, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Not only have dividend payouts from Crescent Point Energy fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves. Relative to peers, Crescent Point Energy produces a yield of 3.40%, which is on the low-side for oil and gas stocks.

Next Steps:

Whilst there are few things you may like about Crescent Point Energy from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three relevant aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for CPG’s future growth? Take a look at our free research report of analyst consensus for CPG’s outlook.

2. Valuation: What is CPG worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether CPG is currently mispriced by the market.

3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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