PXD - Pioneer Natural Resources Is Making a Game-Changing Move for Investors
2023-06-18 05:17:00 ET
Pioneer Natural Resources (NYSE: PXD) is a U.S. onshore energy driller. With the rapid increase in energy prices in 2021, the company switched its dividend policy to better reward investors. It was a cash bonanza for shareholders.
But the dividend policy was just changed again. The outcome from this change should be just as positive for investors, but in a different way.
The big story behind Pioneer's dividend change in 2021 was basically oil prices. In 2020 the efforts to slow the spread of the coronavirus pandemic, which effectively shut down vast swathes of the global economy, led to a massive price decline in oil. When economies opened up again, oil prices rose dramatically. In an effort to reward investors for owning the stock, Pioneer linked its dividend to financial performance.
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Pioneer Natural Resources Is Making a Game-Changing Move for Investors