National Fuel Gas Hikes Dividend by 3.9%, Boosts Shareholder Value

National Fuel Gas Company NFG announced that its board of directors has approved a 3.9% increase in its quarterly dividend rate. The new dividend rate will be 53.5 cents per share (compared with the previous quarter’s 51.5 cents), payable on July 15, 2025, to stockholders of record at the close of business on June 30, 2025.This increase resulted in an annualized dividend of $2.14 per share compared with the previous level of $2.06. National Fuel Gas’ current dividend yield is 2.45%, higher than the Zacks S&P 500 composite's average of 1.24%. The company has paid dividends for 123 consecutive years and this hike marks its 55th consecutive annual dividend increase. More details relating to NFG’s dividend are available here.Can National Fuel Gas Sustain Dividend Hikes?National Fuel Gas’ focus on the Marcellus and Utica shale formations provides a strong foundation for future growth in production volumes as well as revenues. The company’s efforts to increase production and improve operational efficiencies, particularly in the E&P segment, lead to higher volumes and lower unit costs, boosting profitability.NFG is well-positioned to capitalize on opportunities in artificial intelligence and data centers. It can address the growing demand for gas-fired power production, thanks to its vertically integrated natural gas infrastructure in the low-cost Appalachian Basin.Since 2010, National Fuel Gas Company has invested $2.9 billion in midstream operations to expand and modernize its pipeline infrastructure to gain access to Appalachian production. The company has more than $500 million in investment planned over the next five years for the modernization of pipeline transportation and distribution systems.The company continues to replace and modernize the existing pipelines in the fiscal 2020-2025 period. It replaced 793 miles of utility main pipelines in the aforementioned period and expects to replace them further in the long term.The potential for NFG to expand and improve even better indicates that management will have the funds to continue with its shareholder-friendly initiatives in the future.Legacy of Dividend PaymentOther oil and gas companies that have stable operations and earnings also enhance shareholder value through dividend hikes. In the past few months, Devon Energy DVN, ONEOK OKE and Chevron Corporation CVX have raised their quarterly dividend rate by 9.1%, 4% and 4.9%, respectively.The Zacks Consensus Estimate for Devon Energy’s 2025 earnings is pegged at $3.92 per share, implying a year-over-year decrease of 18.7%. DVN’s current dividend yield is 2.73%.The Zacks Consensus Estimate for ONEOK’s 2025 earnings is pegged at $5.23 per share, implying a year-over-year increase of 1.2%. OKE’s current dividend yield is 4.92%.The Zacks Consensus Estimate for Chevron’s 2025 earnings is pegged at $6.87 per share, implying a year-over-year decrease of 31.6%. CVX’s current dividend yield is 4.69%.NFG Stock’s Price PerformanceIn the past three months, National Fuel Gas’ shares have risen 9.2% against the industry’s decline of 2.5%. Image Source: Zacks Investment ResearchNFG’s Zacks RankNational Fuel Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report ONEOK, Inc. (OKE): Free Stock Analysis Report National Fuel Gas Company (NFG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks