uploads/2017/02/Dividend-Yield-1.jpg

Comparing the Dividend Yields of SLB, HAL, BHI, and NOV

By

Updated

Schlumberger’s dividend and dividend yield

Schlumberger’s (SLB) quarterly dividend per share (or DPS) remained the same from 4Q15 to 4Q16. SLB’s annualized DPS is $2.00.

Schlumberger’s dividend yield, expressed as its DPS relative to its share price, is the highest among our set of oilfield equipment and services (or OFS) companies. On February 10, 2017, SLB’s stock price had risen 21% compared to a year ago. Its unchanged DPS and higher stock price led to its dividend yield’s fall to ~2.4% from ~2.8% a year earlier. Schlumberger makes up 0.6% of the Vanguard Growth ETF (VUG).

Article continues below advertisement

Analyzing dividend yields for HAL and BHI

Halliburton’s (HAL) quarterly DPS remained the same from 4Q15 to 4Q16. Halliburton’s annualized DPS stands at $0.72. On February 10, 2017, HAL’s stock price had risen 93% compared to a year ago. Its unchanged DPS and higher stock price led to its dividend yield’s fall to 1.3% compared to ~2.3% a year earlier.

On February 10, 2017, Baker Hughes’s (BHI) dividend yield had fallen to ~1.1% from ~1.6% a year earlier.

Is NOV’s dividend yield the lowest?

On February 10, 2017, National Oilwell Varco’s (NOV) dividend yield had fallen to ~0.5% from ~5.6% a year earlier. In the past year, NOV’s stock price had risen 47%. In April 2016, NOV reduced its quarterly dividend by 89% to $0.05 per share to preserve capital following a sustained fall in energy prices. This move resulted in its dividend yield plummeting compared to the previous year.

Next, let’s discuss the correlations between these oilfield services companies’ prices and crude oil’s price.

Advertisement

More From Market Realist