California Resources Corp Offers Attractive Dividend Yield Over 3%

Investors Should Consider the Importance of Dividends

On Friday, shares of California Resources Corp (Symbol: CRC) yielded above 3% based on its quarterly dividend, which is annualized to $1.55. The stock price dipped as low as $51.47 on that day. Dividends are vital for investors, as they have historically contributed significantly to the overall returns of the stock market. For instance, if an investor had purchased shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, the cost per share would have been $78.27. By May 31, 2012, the value per share had slightly declined to $77.79, which is a decrease of $0.48 or 0.6% over twelve years. However, the investor would have gained $10.77 per share in dividends during that time, resulting in a total return of 13.15%. Even after reinvesting dividends, the average annual total return would be about 1.0%. This makes California Resources Corp’s yield of over 3% particularly appealing, provided it can be maintained. Being part of the Russell 3000 highlights California Resources Corp’s status as one of the largest companies on U.S. stock markets.

Typically, dividend amounts can fluctuate and are influenced by the profitability of the company. In the case of California Resources Corp, reviewing its dividend history chart can assist investors in evaluating the likelihood that the recent dividend will continue and whether a 3% annual yield is a reasonable expectation.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.