Diversified holding company Houston Natural Resources Corp (OTCMKTS:HNRC) is involved in a wide range of business operations and investments. The company came on to the radars of investors in a big way this past Friday after it made an announcement with regards to a new dividend policy.
HNRC Implements Dividend Policy
The announcement came as a boost for the Houston Natural Resources stock and it ended the day with gains of as much as 9%. In light of such gains, it may be a good idea for investors to take a closer look at the development and then make their minds up about the stock.
The implementation of the new dividend policy is an interesting development for the company. While Houston Natural Resources noted that it believes that it is willing to pay out dividends in order to rewards its loyal shareholders, the company also pointed out the necessity to have the extra provisions for corporate reserves.
The company announced that it would need to shore up its corporate reserves in order to keep its investments safe and sound. The announcement made on Friday was with regards to the distribution in the investment that is made in the special purpose acquisition company HNR Acquisition Corp.
HNR Acquisition Corp had started trading on the New York Stock Exchange back on February 11. Houston Natural Resources announced that it would pay out the dividends for the investment either in the form of cash or shares to existing shareholders. At this point in time, the shares in question are locked up. The announcement was a significant one from the company and more often than not, updates about dividend policies can lead to major optimism among investors.
At this point in time, it may be a good idea for investors to consider adding the Houston Natural Resources stock to their watch lists. It now remains to be seen if the stock continued to add to its gains today.
