Schlumberger’s dividend and dividend yield
On June 30–September 29, 2017, Schlumberger’s (SLB) stock price rose 6%, while its dividend per share was unchanged from 2Q17 to 3Q17. In October 2017, Schlumberger announced a quarterly dividend of $0.50 per share.
Schlumberger’s dividend yield, expressed as the dividend per share relative to the stock price, was ~2.9% on September 29, 2017. On November 22, 2017, its dividend yield increased to ~3.2% due to an 11% stock price fall on September 29–November 22.
Dividend yield compared with peers
In comparison, Halliburton’s (HAL) dividend yield was ~1.7% on September 29, 2017. As of September 29, 2017, Core Laboratories’ (CLB) dividend yield was ~2.2%. Schlumberger accounts for 15.1% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ’s price has fallen 21% in the past year, which outperformed the fall in Schlumberger’s stock price during the same period.
Why is the dividend yield important?
The dividend yield expresses shareholders’ returns through dividends. The dividend yield can be used to compare a stock with other stocks in the same industry. Schlumberger’s high dividend yield combined with its consistent dividend payout indicates its attractiveness from a regular yield standpoint.
To learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer and The 5 Worst Oilfield Companies by Year-to-Date Returns.