Major oilfield services provider
) 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
) which currently sports a Zacks Rank #1 (Strong Buy) or
Baker Hughes Inc.
Core Laboratories NV
) which hold a Zacks Rank #2 (Buy) as good investment
BAKER-HUGHES (BHI): Free Stock Analysis
CORE LABS NV (CLB): Free Stock Analysis
EMERGE ENRG SVC (EMES): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
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