02-26-2015, 10:03 AM
Ensco slashes its quarterly dividend by 80% to $0.15/share
Just as I was expecting. The stock was already beaten down and the oil market is still in turmoil.
Not happy about it but it's a small, speculative portion of the wife's portfolio. Willing to hold because this should boost their financial picture coming out of the oil slump -- they should still have a lower debt/equity ratio than most of their competitors, the fleet (especially deepwater submersibles) should be amongst the newest in the field and they should still have the best reputation for service in their field. Have to watch the debt as this continues.
If it eliminates the dividend completely, then we'd have to be out but I'm not expecting that right now.
- Ensco (NYSE:ESV) slashes its quarterly dividend by 80% to $0.15/share to improve capital management flexibility in market downturn.
- Forward yield 2.26%.
- The dividend is payable on March 20, with stockholders on record of Mar 9.
Just as I was expecting. The stock was already beaten down and the oil market is still in turmoil.
Not happy about it but it's a small, speculative portion of the wife's portfolio. Willing to hold because this should boost their financial picture coming out of the oil slump -- they should still have a lower debt/equity ratio than most of their competitors, the fleet (especially deepwater submersibles) should be amongst the newest in the field and they should still have the best reputation for service in their field. Have to watch the debt as this continues.
If it eliminates the dividend completely, then we'd have to be out but I'm not expecting that right now.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan