EOG - EOG Resources: Dividends Are Their Only Choice 10%+ Yield Possible

• Unlike many United States shale oil and gas companies, EOG Resources has a good reputation for consistently producing solid performance for their shareholders.
• This was evident throughout the downturn of 2020 and subsequently during 2021 with their guidance for 2022 pointing towards massive free cash flow that should set a new record.
• Since they sport zero leverage and strong liquidity, they have no handbrakes upon returning all of their free cash flow to their shareholders.
• Since management prefers special dividends instead of share buybacks, it effectively means that dividends are their only choice for deploying their free cash flow.
• Thanks to these very strong oil prices, they could provide a very high 10%+ dividend yield on current cost during 2022, and thus, I believe that a buy rating is appropriate.

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