Boston, MA 05/19/2014 (wallstreetpr) – National-Oilwell Varco, Inc. (NYSE:NOV) has increased its dividend for the second time. The company is also ready to spin off NOW very soon.
Increases dividend
National-Oilwell has increased its quarterly cash dividend of $0.46 per share or $1.84 annualized. This is about 77% increase from $0.26. The increase in dividend could not help the company in the share market. The news didn’t help the company’s stock go up. However, this may be due to the fact that the dividend increase was anticipated as the company indicated about the possible increase.
According to the company, the increase shows that the company is confident about its financials and future cash flow growth. This is the second major dividend increase by National-Oilwell. Last year, the company doubled the dividend payout to $0.26.
Spin-off
National-Oilwell Varco, Inc. (NYSE:NOV)’s board of directors approved the spin-off of the distribution business. The distribution business will now be known as NOW Inc. The headquarter of the new company will be in Houston.
Pro rata distribution of outstanding shares of NOW will be done to National-Oilwell stockholders. This is how separation will be done. The distribution will happen on May 30, 2014 after market close.
Each NOV shareholder will receive one share of NOW common stock against every four shares of NOV common stock.
Of the distribution of the NOW common shares, NOW will become an independent entity. It will be a publicly traded company. NOV will not have any ownership interest in NOW. NOW is waiting for the approval for listing its common stock. The Commons stocks will be listed on New Year Stocks Exchange. The company will have a symbol of DNOW.
National-Oilwell Varco, Inc. (NYSE:NOV) stockholders do not have to do anything to receive the shares of NOW common stock. They will receive book entry account statement which will confirm their ownership of the NOW common stock.
