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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