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



Schlumberger’s dividend and dividend yield

Schlumberger’s (SLB) quarterly dividend per share remained unchanged from 1Q16 to 1Q17. SLB’s annualized dividend per share (or DPS) is $2.00.

Schlumberger’s dividend yield, expressed its dividend per share relative to its stock price, is the highest among our selected set of oilfield equipment and services (or OFS) companies. On May 2, 2017, SLB’s stock price had fallen 10% compared to a year earlier. SLB’s unchanged DPS and lower stock price caused its dividend yield to rise to ~2.8% from ~2.5% a year earlier. Schlumberger makes up 0.51% of the Vanguard Growth ETF (VUG).

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Analyzing HAL’s and BHI’s dividend yields

Halliburton’s (HAL) quarterly DPS remained unchanged from 1Q16 to 1Q17. Its 1Q17 DPS stands at $0.18. On May 2, 2017, HAL’s stock price had risen 8% compared to a year earlier. Its unchanged DPS and higher stock price led to its dividend yield falling to 1.6% as of May 2, compared to ~1.7% a year earlier.

On May 2, Baker Hughes’s (BHI) dividend yield had fallen to ~1.1%, compared to ~1.4% a year earlier.

Is NOV’s dividend yield the lowest?

On May 2, 2017, National Oilwell Varco’s (NOV) dividend yield fell to 0.57% from ~5.1% a year earlier. In the past year, NOV’s stock price has fallen 3%.

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 resulted in its dividend yield plummeting over the past year.

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


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