CPG stock needs a yield - or it will get stuck at $5.00 CPG is competing for capital. As the markets rotate out of growth, into value, long term investors are going to look for yield. The NCIB is needed as is debt pay down, but the company will not attract long term buyers without raising the current dividend, to at least the 2.5% to 3% level. The current dividend is nothing, only a reminder of what you can receive else where.
Canadian Energy Companies - really - should not be a growth story. They are deep value at best, and if oil price can maintain the current levels. With Cresent Point there should be room to raise the dividend slightly so that the company and its stock attracts long term investors - NOT short term swing traders or short traders.
Oil at WTI$50 should be a given. At WTI$60 its a gift. I am somewhat skepital that most governments can get their acts together such that the Covid-19 virus abates, so I would be suprised if oil every gets to WTI$70. I respect what Eric Nuttall has to say, I think he does great research, but he is extremely overly optimistic on the price. There is too much spare capacity to meet the current demand over the new two to three years.
So if we have to wait two to three years, then as business owners of CPG - we should get paid in the form of a higher dividend. $0.12 per share annually works out to 2.4% on a $5.00 share price, or 3% on a $4.00 share price.