When a company makes a key announcement with regards to its dividend policy then it can lead to a big move in its stock one way or another. Thankfully for Houston Natural Resources Corp (OTCMKTS:HNRC), the situation has actually worked well for the company’s stock since it made an announcement with regards to the implementation of a new dividend policy back on March 4, 2022.
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The stock was actually on the radars of investors on Tuesday as well and ended up with gains of as much as 28% amidst heavy interest. In this situation, it may be a good idea for investors to take a closer look at the actual announcement made on March 4.
Houston Natural Resources announced on that day that while it was looking to reward its loyal shareholders with dividends, it was also going to pay due consideration to its long-term financial health. In order to achieve that, the company was going to make higher provisions to the corporate reserves that it has at its disposal. The move has been decided with the sole purpose of making sure that Houston Natural Resources can manage to have a sound and safe investment planning system in place.
However, there was another important announcement from the company as well and that was with regards to the distribution that it was going to receive from the special purpose acquisition company that it had floated on the New York Stock Exchange back on February 11, 2022.
The company announced that the distribution from the same is going to be provided to the shareholders in the form of dividends. The dividends in question could either be in the form of cash or additional shares. The announcement seemed to have come as a boost for the Houston Resources stock and that can be gauged from the price action in the stock in the past few days.
