A tasty pay day is on the way for Santos shareholders
The post What you need to know about the Santos (ASX:STO) dividend appeared first on The Motley Fool Australia. –
However, shares in the Aussie oil and gas giant have still slid 1.7% lower at the time of writing following its half-year result.
What you need to know about the Santos dividend
Let’s start with a brief look at the Santos results as a whole. The Aussie energy producer reported its half-year results this morning including the below highlights:
Net profit after tax of US$354 million (~A$484 million), up from US$289 million (~A$396 million) loss in prior corresponding period (pcp).
Revenue increased 22% compared to last year’s first half to US$2 billion (~A$2.7 billion)
Earnings before interest, taxes, depreciation, amortisation, and exploration (EBITDAX) of US$1.2 billion (A$1.6 billion) – up 24% on the pcp.
Free cash flow of US $572 million, up 33% on 1H 2020 figures.
Santos dividend (interim) up 162% to US 5.5 cents per share.
That last item is the one that would have caught the eye of many a shareholder. Santos has more than doubled its interim dividend to US 5.5 cents (~7.5 cents in AUD) according to today’s release.
The Santos dividend increase has come during a period of fluctuating commodity prices and changing supply and demand dynamics.
Santos delivered strong free cash flow throughout the year thanks to record production across its diversified portfolio and cost reduction efforts. A reopening in the first half of the year boosted oil and gas prices and helped increase revenue for the group.
Those strong earnings figures have allowed the Board to increase the Santos dividend but the company’s share price is still sliding on Tuesday afternoon.
One looming factor for the Santos share price is the proposed merger with Oil Search Ltd (ASX: OSH).
Should you invest $1,000 in Santos right now?
Before you consider Santos, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos wasn’t one of them.
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*Returns as of August 16th 2021
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.