Baker Hughes Company Announces Quarterly Dividend of $0.23 (NASDAQ:BKR)

Key Points

• $0.23 quarterly dividend announced, payable May 15 to shareholders of record on May 5, equivalent to a $0.92 annual dividend and a yield of about 1.4%.
• The dividend appears sustainable: Baker Hughes' payout ratio is ~33.8%, it has raised dividends for four consecutive years, and analysts expect roughly $2.90 EPS next year (implying a projected payout ratio near 31.7%).
• Baker Hughes beat quarterly EPS estimates ($0.58 vs. $0.49) on $6.59B revenue, the stock rose ~3.1%, and analysts are mostly positive with a consensus "Moderate Buy" and an average target around $61.86.

Baker Hughes Company (NASDAQ:BKR - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Shareholders of record on Tuesday, May 5th will be given a dividend of 0.23 per share on Friday, May 15th. This represents a c) annualized dividend and a yield of 1.4%. The ex-dividend date is Tuesday, May 5th.

Baker Hughes has raised its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 4 years. Baker Hughes has a payout ratio of 33.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Baker Hughes to earn $2.90 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 31.7%.

Baker Hughes Stock Up 3.1%

BKR stock opened at $64.49 on Friday. Baker Hughes has a 1-year low of $34.56 and a 1-year high of $67.00. The firm has a market cap of $63.73 billion, a price-to-earnings ratio of 24.80, a PEG ratio of 2.12 and a beta of 0.90. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.36 and a quick ratio of 1.00. The firm has a fifty day moving average price of $61.18 and a two-hundred day moving average price of $53.56.

Baker Hughes (NASDAQ:BKR - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.49 by $0.09. Baker Hughes had a net margin of 9.33% and a return on equity of 14.26%. The company had revenue of $6.59 billion during the quarter, compared to the consensus estimate of $6.71 billion. During the same quarter in the previous year, the company posted $0.51 earnings per share. The company's revenue for the quarter was up 2.5% compared to the same quarter last year. Research analysts predict that Baker Hughes will post 2.4 EPS for the current year.

Analysts Set New Price Targets

BKR has been the subject of several research analyst reports. BMO Capital Markets upped their price objective on shares of Baker Hughes from $65.00 to $70.00 and gave the stock an "outperform" rating in a report on Tuesday, March 3rd. iA Financial set a $60.00 price objective on shares of Baker Hughes in a report on Tuesday, January 27th. JPMorgan Chase & Co. upped their price target on shares of Baker Hughes from $53.00 to $60.00 and gave the company an "overweight" rating in a report on Tuesday, January 27th. Johnson Rice started coverage on shares of Baker Hughes in a report on Wednesday, February 25th. They issued a "buy" rating and a $68.00 price target for the company. Finally, Argus upped their price target on shares of Baker Hughes from $55.00 to $67.00 in a report on Tuesday, January 27th. Nineteen investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $61.86.

Baker Hughes Company Profile

Baker Hughes is an energy technology company that provides a broad portfolio of products, services and digital solutions for the oil and gas and industrial markets. Its offerings span oilfield services and equipment — including drilling, evaluation, completion and production technologies — as well as turbomachinery, compressors and related process equipment used in midstream and downstream operations. The company also supplies aftermarket services, field support and integrated solutions designed to improve asset performance and uptime across the energy value chain.

The firm's roots trace back to the merger of Baker International and Hughes Tool Company, and more recently it combined with GE's oil and gas business in 2017 to form Baker Hughes, a GE company (BHGE); subsequent changes in ownership restored Baker Hughes as an independent publicly traded company.

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