PEY’s September‑15, 2025 payout of $0.11 per share marks a step up from the level it has been issuing in recent months. Since the company began its monthly‑dividend program in 2020, the regular amount has been $0.10 per share (the same $0.10 was confirmed for the August 2024 dividend and for the July 2025 dividend). The August 2025 announcement therefore represents a 10 % increase over the prior monthly payouts.
From a fundamentals perspective, the higher dividend signals that PEY’s cash‑flow generation remains strong enough to support a modest uplift in its payout ratio, which is still comfortably below the 50 % threshold for a junior‑mid‑cap energy producer. The incremental yield (≈ 5.5 % on the current ~C$2.00‑C$2.10 price) should keep the stock attractive to income‑focused investors, especially as the broader market still values dividend‑paying energy names at a premium to peers with weaker cash‑flow coverage.
Trading implications
- Bullish bias: The dividend increase can act as a near‑term catalyst, providing price support and potentially drawing new dividend‑seeking buyers. Expect the share price to hold around the C$2.00–C$2.10 range, with the $0.11 payout acting as a floor.
- Risk check: Watch the payout ratio and operating cash flow in the next quarterly results. If cash‑flow eases, the higher dividend could be reversed, prompting a corrective sell‑off.
- Entry/exit: For investors seeking yield, a buy‑on‑dip around the current level is reasonable. If the price tests the C$2.20 resistance without further dividend‑related news, consider tightening stops or taking partial profits.