Even larger, more financially sturdy oil services companies could face the specter of dividend cuts or suspensions. The options market is pricing in a reduction to Schlumberger’s (NYSE: SLB) recently increased dividend.
Schlumberger, the world’s largest oilfield services provider, recently announced a 25% dividend increase, bringing its payout to $2 per share per year. The options market is not impressed and sees the potential for that dividend to fall to $1.40 a share. That stock is OIH’s largest holding at a weight of 20.4%. [Big Energy ETFs Face Dividend Issues]
Market Vectors Oil Service ETF
