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Comparing Dividend Yields for SLB, HAL, and NOV

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Schlumberger’s dividend and dividend yield

Schlumberger’s (SLB) quarterly dividend per share remained unchanged from 4Q16 to 1Q17. SLB’s annualized dividend per share (or DPS) is $2.00. Schlumberger’s dividend yield, which is expressed as dividend per share relative to the share price, is the highest among our set of oilfield equipment and services (or OFS) companies. 

On May 23, 2017, SLB’s stock price decreased 8% compared to March 31, 2017. Unchanged DPS and a lower stock price led to SLB’s dividend yield increasing to ~2.8% on May 23 from ~2.6% by the end of 1Q17. Schlumberger comprises 0.50% of the Vanguard Growth ETF (VUG).

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What are dividend yields for HAL and BHI?

Halliburton’s (HAL) quarterly DPS remained unchanged from 4Q16 to 1Q17. Halliburton’s 1Q17 DPS stands at $0.18. 

On May 23, 2017, HAL’s stock price fell 3% compared to 1Q17. Unchanged DPS and a lower stock price led to HAL’s dividend yield rising to 1.50% on May 23 from ~1.46% on March 31, 2017.

NOV’s dividend yield

On May 23, 2017, National Oilwell Varco’s (NOV) dividend yield increased to 0.57% from ~0.50% by the end of 1Q17. Since March 31, NOV’s stock price has decreased 13%, which resulted in a higher dividend yield. 

In April 2016, NOV reduced its quarterly dividend 89% to $0.05 per share to preserve its capital following a sustained decline in energy prices. This resulted in a fall in its dividend yield compared to the previous year.

In the next article, we’ll compare the relative valuation multiples of these OFS energy stocks.

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