CVR Energy Inc. (NYSE: CVI) has confirmed that it intends to sell part of its majority interest in CVR Partners LP (NYSE: UAN). The move is to assist the company in an effort to pay a special dividend to stockholders as well as adopting a regular dividend. The special dividend will be set ahead and the first normal dividend from the corporation will be $0.08 per share per quarter.
CVR refines and markets petroleum products and fuel, while the CVR Partners entity produces nitrogen fertilizer.
The company’s first dividend will be paid on a date to be determined after its first quarter report. The special dividend and the sale of the CVR Partners interest is aimed at strengthening the parent’s balance sheet and financial flexibility.
Shares of CVR Energy have not yet traded after a $27.10 close on Friday, while the 52-week trading range is $16.62 to $29.61.
As far as what the $0.32 annoualized payout translates to, the yield will be almost 1.2%.
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