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A Dividend Analysis for SLB, HAL, NOV, and BHI

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Schlumberger’s dividend and dividend yield

Schlumberger’s (SLB) quarterly dividend per share remained unchanged from fiscal 1Q15 to fiscal 1Q16. In fiscal 2015, SLB’s annual dividend per share (or DPS) increased 25% to $2 compared to $1.60 in fiscal 2014.

Schlumberger’s dividend yield, expressed as dividend per share relative to the share price, is the highest among our group of oilfield services and equipment (or OFS) companies. As of May 11, 2016, SLB’s share price fell 20% compared to a year ago. Unchanged DPS and a lower share price led to SLB’s dividend yield increasing to 2.7% on May 11, 2016, from 2.4% a year earlier.

Schlumberger is 0.58% of the SPDR S&P 500 ETF (SPY).

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Dividends for Halliburton and Baker Hughes

Halliburton’s (HAL) quarterly DPS remained unchanged from fiscal 1Q15 to fiscal 1Q16. In fiscal 2015, Halliburton’s annual DPS increased 14% to $0.72 compared to $0.63 in fiscal 2014. As of May 11, 2016, HAL’s share price declined 17% compared to a year ago. Unchanged DPS and a lower share price led to HAL’s dividend yield increasing to 1.9% as of May 11, from 1.6% a year earlier.

Baker Hughes’s (BHI) quarterly DPS remained unchanged from fiscal 1Q15 to fiscal 1Q16. In fiscal 2015, Baker Hughes’s DPS increased 6% to $0.68 compared to $0.64 in fiscal 2014. As of May 11, 2016, BHI’s share price fell 33% compared to a year ago. Unchanged DPS and a lower share price led to BHI’s dividend yield increasing to 1.5% as of May 11, from 1.1% a year earlier.

NOV’s dividend and dividend yield decline

On April 11, 2016, National Oilwell Varco (NOV) slashed its quarterly dividend by 90% to $0.05 compared to a year earlier. This was in response to a deteriorating energy market led by weak crude oil prices. As of May 11, 2016, NOV’s share price fell 37% compared to a year ago. Lower DPS and lower share price led to NOV’s dividend yield declining to 0.63% as of May 11, from 3.7% a year earlier.

In the next article, we’ll look at Wall Street analysts’ recommendations and target prices for these OFS energy stocks.

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