Civeo Announces Quarterly Dividend

Rhea-AI Summary

Civeo Corporation (CVEO) has declared a quarterly cash dividend of $0.25 per common share, payable on March 18, 2024, to shareholders of record as of February 26, 2024. The dividend has been designated as an 'eligible dividend' for the Income Tax Act (Canada).

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.25 per common share by Civeo Corporation can be seen as a positive signal to shareholders, indicating the company's current profitability and liquidity status, as well as management's confidence in its future cash flows. Dividends are typically distributed by companies that have reached a certain level of maturity and have a stable earnings outlook. This can often lead to a favorable perception among investors, potentially increasing the stock's attractiveness.

It is also important to consider the dividend yield, which is calculated by dividing the annual dividends per share by the stock's current price. If Civeo Corporation's dividend yield is higher than the average for its industry or the broader market, it could attract income-focused investors. However, investors should also assess the sustainability of the dividend by reviewing the company's payout ratio, which is the proportion of earnings paid out as dividends to shareholders.

Tax Expert

From a tax perspective, the designation of the dividend as an 'eligible dividend' for the purposes of the Income Tax Act (Canada) is particularly relevant for Canadian shareholders. Eligible dividends are taxed at a lower rate compared to ordinary income, which can provide a tax advantage for individuals in higher tax brackets. This distinction is crucial for shareholders to understand, as it affects the after-tax income they receive from their investment. Shareholders should consult with a tax professional to understand the specific implications for their personal tax situation.

HOUSTON & CALGARY, Alberta--(BUSINESS WIRE)-- Civeo Corporation (NYSE:CVEO) announced today that its board of directors has declared a quarterly cash dividend of $0.25 per common share, payable on March 18, 2024 to shareholders of record as of close of business on February 26, 2024. For purposes of the Income Tax Act (Canada), the Company has designated this dividend to be an "eligible dividend".

About Civeo

Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently operates a total of 24 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 26,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240202526715/en/

Regan Nielsen

Civeo Corporation

Vice President, Corporate Development & Investor Relations

713-510-2400

Source: Civeo Corporation

FAQ

What is the dividend amount declared by Civeo Corporation?

Civeo Corporation has declared a quarterly cash dividend of $0.25 per common share.

When will the dividend be payable to shareholders?

The dividend will be payable on March 18, 2024.

What is the record date for shareholders to receive the dividend?

Shareholders of record as of close of business on February 26, 2024, will receive the dividend.

What is the designation of the dividend for the Income Tax Act (Canada)?

The Company has designated this dividend to be an 'eligible dividend' for the Income Tax Act (Canada).