For Investors Only: Look For Increased Dividends In The Oil Patch
MarketPlace is reporting:
Halliburton Co. late Wednesday increased its quarterly dividend 39% to 12.5 cents a share, adding it wants future yearly cash dividends to represent at least 15% to 20% of net income.
The last time Halliburton had raised dividends was May 2007. The
company’s goal implies a potential dividend increase of 30% to 35% next
year, analysts at Simmons & Co said.
UBS analysts, for their part, said the Halliburton move could lead
others to follow suit later this year, particularly U.K.-based offshore
driller Ensco PLC. Ensco’s dividend increase could be announced in the first quarter.
Ensco currently pays $1.50 a share, but could raise it to $2 or $2.50 a share, they added.
Schlumberger Ltd. increased dividends in January by 14%.
“Schlumberger will also
seek to regularly raise their dividends in coming years as free cash
flows grows substantially,” UBS said.
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