Cenovus trims capital spending plans while boosting dividend 25%

The Calgary-based energy company,Cenovus Energy Inc. says it will now pay a quarterly dividend of 6.25 cents per share, up from a nickel.

Based on the company's closing share price of $12.05 on Tuesday, it will have an annual yield of nearly 2.1 per cent.

Cenovus also says it believes it will have capacity for further dividend increases at a potential growth rate of five to 10 per cent annually.

The increased payment to shareholders came as Cenovus also trimmed its capital spending plan for this year.

The company cut its 2019 capital budget guidance to between $1.1 billion and $1.2 billion, a $150-million reduction from the midpoint of its April forecast.

Cenovus made the changes ahead of its investor day where it will meet with institutional investors and financial analysts.