Halliburton Hikes Dividend by 20% - Analyst Blog
November 07 2013 - 6:05PM
Zacks
Major oilfield services provider Halliburton
Company (HAL) increased its fourth quarter 2013 dividend
by 20% to 15 cents per share (60 cents per share annualized) from
12.5 cents per share. The new dividend will be paid on Dec 27, 2013
to shareholders of record as of Dec 6.
The dividend hike, along with the prior increase of 39% in the
first quarter of the year and Halliburton’s share repurchase
programs reflect the company’s confidence in its operations and
growth outlook. Going forward, the bullish trend would continue
with Halliburton’s plan to disburse around 15% to 20% of its annual
net income by way of dividend.
Halliburton announced that it bought back roughly 68 million common
shares during the third quarter, for a total consideration of $3.3
billion. We believe that the share repurchases and the increase in
dividend will boost investors’ confidence in the stock, thereby
driving unit value.
Last month, Halliburton reported third quarter adjusted earnings
per share from continuing operations of 83 cents, in line with the
Zacks Consensus Estimate and 23.9% higher from the 67 cents per
share reported in the year-ago period amid higher operating
activities from the international markets. Revenues of $7,472.0
million were also up 5.1% from the third quarter of 2012.
The Houston, Texas-based company is one of the largest oilfield
service providers in the world, offering a variety of equipment,
maintenance, and engineering and construction services to the
energy, industrial and government sectors.
The company currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can consider other stocks in the oilfield services
sector such as Emerge Energy Services LP Commo
(EMES) which currently sports a Zacks Rank #1 (Strong Buy) or
Baker Hughes Inc. (BHI) and Core
Laboratories NV (CLB) which hold a Zacks Rank #2 (Buy) as
good investment opportunity.
BAKER-HUGHES (BHI): Free Stock Analysis Report
CORE LABS NV (CLB): Free Stock Analysis Report
EMERGE ENRG SVC (EMES): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
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