Cactus Announces Quarterly Cash Dividend

Rhea-AI Summary

Cactus, Inc. (NYSE: WHD) has approved a quarterly cash dividend of $0.12 per share of Class A common stock, with a payment date of March 14, 2024. Holders of record of Class A common stock at the close of business on February 26, 2024, will be eligible for the dividend. Additionally, a corresponding distribution of up to $0.12 per CC Unit has been approved for holders of CC Units of Cactus Companies, LLC. Future dividends and their amounts are subject to approval by Cactus' Board of Directors.

Positive

• Approval of a quarterly cash dividend
• Payment date set for March 14, 2024
• Corresponding distribution approved for CC Units holders

Negative

• None.

Insights

Financial Analyst

The announcement by Cactus, Inc. regarding the payment of a quarterly cash dividend is a significant indicator of the company's current financial health and its commitment to returning value to shareholders. Dividends are typically a share of profits distributed to shareholders and can be a sign of a company's stable cash flow and profitability. In this case, the declared dividend of $0.12 per share represents a tangible return on investment for shareholders.

From a financial analysis perspective, the dividend yield, which is the dividend per share divided by the stock price, is a critical metric for investors. It provides insight into the return they can expect on their investment, excluding any potential capital gains. In the context of the broader market, the dividend yield can be compared against sector averages and fixed-income securities to assess the attractiveness of the stock for income-focused investors.

Furthermore, the declaration of future dividends being subject to board approval is standard practice, indicating a prudent approach to capital management. Companies often retain the flexibility to adjust dividends based on future earnings, investment opportunities and cash flow needs. Investors typically view consistent and growing dividends positively, as they may signal confidence in the company's future earnings potential.

Market Research Analyst

The payment of dividends can also have implications for the stock's market performance. Dividend announcements often influence investor sentiment and can lead to increased stock demand, potentially driving up the share price. The market may interpret regular dividends as a sign of a company's resilience and a stable financial outlook, which can be particularly reassuring in volatile or uncertain economic times.

Analyzing the company's dividend history and comparing it with industry peers can provide insights into its competitive position and financial strategy. For instance, a higher-than-average dividend yield might attract income investors, while a lower or inconsistent dividend could suggest a company is reinvesting earnings into growth opportunities or experiencing fluctuating cash flows.

It's also important to consider the total shareholder return, which combines dividend payments and stock price appreciation. This metric can help investors understand the overall value they might receive from holding the stock over time. In the case of Cactus, Inc., the impact of dividend payments on total shareholder return would be an essential factor for market analysts to consider.

HOUSTON--(BUSINESS WIRE)-- Cactus, Inc. (NYSE: WHD) (“Cactus”) today announced that its Board of Directors approved the payment of a quarterly cash dividend of $0.12 per share of Class A common stock with payment to occur on March 14, 2024 to holders of record of Class A common stock at the close of business on February 26, 2024. A corresponding distribution of up to $0.12 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC.

Declarations of any dividends in the future, and the amount of any such dividends, are subject to approval by Cactus’ Board of Directors.

About Cactus, Inc.

Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers throughout North America and Australia, while also providing equipment and services in select international markets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240123417019/en/

Cactus, Inc.

Alan Boyd, 713-904-4669

Director of Corporate Development and Investor Relations

IR@CactusWHD.com

Source: Cactus, Inc.

FAQ

What is the dividend amount approved for Cactus, Inc. (NYSE: WHD)?

The approved dividend amount is $0.12 per share of Class A common stock.

When is the payment date for the approved dividend for Cactus, Inc. (NYSE: WHD)?

The payment date is set for March 14, 2024.

What is the eligibility criteria for the approved dividend for Cactus, Inc. (NYSE: WHD)?

Holders of record of Class A common stock at the close of business on February 26, 2024, are eligible for the dividend.

What is the corresponding distribution approved for CC Units holders of Cactus Companies, LLC?

A distribution of up to $0.12 per CC Unit has been approved for holders of CC Units of Cactus Companies, LLC.

Who approves future dividends and their amounts for Cactus, Inc. (NYSE: WHD)?

Future dividends and their amounts are subject to approval by Cactus' Board of Directors.