uploads///Dividend and Yield

The Truth behind Halliburton’s Dividend and Dividend Yield

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Mar. 16 2016, Updated 12:04 p.m. ET

Halliburton’s dividend and dividend yield

Halliburton (HAL) increased its dividend between fiscal 2009 and fiscal 2015. In fiscal 2015, Halliburton’s DPS (dividend per share) increased by 14% to $0.72, compared to $0.63 per share dividend in fiscal 2014. Although Halliburton’s net earnings turned negative in fiscal 2015, the strong dividend reflects its management’s confidence in the company’s balance sheet and growth prospects. Industry peer Diamond Offshore Drilling (DO), by contrast, discontinued its quarterly dividend in February 2016.

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HAL’s dividend yield, which is expressed as dividend per share relative to the share price, has generally been on a rise between fiscal 2011 and fiscal 2015. From fiscal 2014 to fiscal 2015, HAL’s share price declined by 13% while its DPS increased. HAL’s dividend yield increased from 1.8% on December 31, 2014, to 2.1% as of March 11.

Earlier, from fiscal 2009 to fiscal 2014, HAL’s share price increased by 31%, while its DPS increased by 75%. In effect, its dividend yield increased from 1.2% on December 31, 2009, to 1.8% as of December 31, 2014.

How much can Halliburton pay in dividends?

Halliburton intends to pay dividends representing at least 15%–20% of its net income on an annual basis. However, dividend payments are subject to approval from the company’s board of directors. Halliburton makes up 0.17% of the SPDR S&P 500 ETF (SPY).

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