Halliburton Co's Dividend Analysis
Insight into Halliburton Co's Upcoming Dividend and Historical Performance
Halliburton Co (NYSE:HAL) recently announced a dividend of $0.16 per share, payable on 2023-12-27, with the ex-dividend date set for 2023-12-06. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Halliburton Co's dividend performance and assess its sustainability.
What Does Halliburton Co Do?
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Halliburton is one of the world's three largest oilfield service firms, boasting extensive expertise across various business lines, including completion fluids, wireline services, and cementing. As the largest pressure pumper in North America, Halliburton has pioneered hydraulic fracturing over the past two decades, cementing its position as a leader in the energy services sector.
A Glimpse at Halliburton Co's Dividend History
Halliburton Co has upheld a steadfast record of dividend payments since 1986, with dividends currently being distributed quarterly. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Halliburton Co's Dividend Yield and Growth
Halliburton Co currently has a 12-month trailing dividend yield of 1.62% and a 12-month forward dividend yield of 1.74%, indicating anticipated dividend increases over the next year. However, the company's annual dividend growth rate over the past three years was -12.60%, which further decreased to -18.20% over a five-year span. The decade-long annual dividends per share growth rate stands at -4.40%. The 5-year yield on cost for Halliburton Co stock is approximately 0.59% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of dividends is often gauged by the dividend payout ratio, which reflects the portion of earnings allocated to dividends. Halliburton Co's dividend payout ratio is currently 0.21, suggesting a balanced approach to dividend distribution and retained earnings for growth. The company's profitability rank stands at 7 out of 10, indicating robust profitability prospects compared to industry peers, with net profits reported in half of the past decade.
Growth Metrics: The Future Outlook
Halliburton Co's growth rank of 7 out of 10 underscores a solid growth trajectory. Despite a -4.40% average annual decrease in revenue per share, Halliburton Co's 3-year revenue growth rate underperforms approximately 77.73% of global competitors. However, the company's 3-year EPS growth rate shows a remarkable average annual increase of 53.40%, outperforming about 77.24% of global competitors, which is a positive sign for dividend sustainability.
Engaging Conclusion: Halliburton Co's Dividend Outlook
Considering Halliburton Co's consistent dividend payments, the current payout ratio, and profitability, the company appears to maintain a prudent approach to its dividend policy. While past dividend growth rates have shown declines, the strength in earnings growth and a solid profitability rank provide a counterbalance, suggesting potential for future dividend stability or growth. Investors should keep an eye on industry trends, regulatory changes, and technological advancements that may influence Halliburton Co's performance and, consequently, its dividend prospects. For those seeking high-dividend yield stocks, GuruFocus Premium offers the High Dividend Yield Screener as a valuable tool.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
