Halliburton (HAL) will pay $0.18 in dividend per share (or DPS) on December 28. Halliburton’s dividend hasn’t changed in the past eight quarters. HAL’s steady dividend reflects the management’s confidence in the company’s balance sheet and growth prospects.
Halliburton increased its DPS in 4Q14 by 20% compared to the previous quarter. HAL’s industry peer National Oilwell Varco (NOV) slashed its quarterly dividend by 90% to $0.05 in April compared to a year earlier and hasn’t changed its dividend since. Schlumberger (SLB) currently pays $0.50 per share in dividends. Baker Hughes (BHI) currently pays $0.17 per share in dividends. Weatherford International (WFT) doesn’t pay dividends.
Halliburton’s dividend yield
Halliburton’s dividend yield, expressed as dividend per share relative to the share price, rose in 3Q16 over 3Q15. From 2Q16 to 3Q16, Halliburton’s share price fell marginally, while its DPS has remained unchanged. HAL’s dividend yield increased from ~1.6% on June 30 to ~1.7% on September 30.
Earlier, from 2009 to 2015, Halliburton’s share price rose 13%, while its DPS doubled. In effect, its dividend yield increased from 1.2% on December 31, 2009, to 2.1% as of December 31, 2015.
Will Halliburton increase dividends in 2016?
Halliburton intends to continue paying dividends at the current rate. However, its dividend payment is subject to its board of directors’ approval. Halliburton makes up 10.3% of the iShares US Oil Equipment & Services ETF (IEZ).
Next, we’ll discuss Halliburton’s valuation compared to its industry peers.