If there is a silver lining for oil services ETFs, it is twofold. First, valuations for some of the strongest names in the group are compelling. Second, those strong names, while familiar, are becoming easier to identify.
The average forward P/E ratio on Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL) and National Oilwell Varco is 13.3, well below the 18.8 P/E on the S&P 500.
Schlumberger, the world’s largest oil services provider, has nearly doubled its payout since 2011. Halliburton, Schlumberger’s primary rival, has boosted its dividend by two-thirds since 2012. National Oilwell Varco, a wide moat stock and a holding at Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A), has roughly quadrupled its payout in just the past year. Those three stocks combine for 39.3% of OIH’s weight. [Dividend Talk Hampers Oil Services ETFs]
Market Vectors Oil Service ETF
