Energy company, Hess Corp.(HES
) reported on Monday that it plans to exit its “Downstream” businesses, shooting shares up on a day when the energy sector declined.
The company reported that it plans to cut out some of its less profitable businesses including its retail, energy marketing, and its energy trading businesses. Hess also reported that it plans to sell current assets that it has in Indonesia and Thailand.
Additionally, Hess said that its board has approved $4 billion in share buybacks, and an increase to the stock’s dividend to $1 annualized. The dividend will be paid in the company’s third quarter.
Hess shares were up $1.06, or 1.54% during premarket trading Tuesday. The stock has increased 5% in the past year.
The Bottom Line
Shares of Hess Corp.(HES) will have a 0.58% yield, based on Monday’s closing price of $68.84.
Hess Corp.(HES) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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