“Forward revenues is at a six-year low, and forward earnings is at an 11-year low. Both are also down the most among the 10 S&P 500 sectors over the past month, three months, and six months. For the next 12 months, forward revenues is expected to fall 18.6%, and forward earnings is expected to decline 40.1%–lowest among the 10 sectors and the only sector with negative readings. Analysts expect annual earnings to fall 58.0% in 2015 after rising 1.0% in 2014,” according to a note published by Yardeni Research on April 22.
XLE bulls got some welcomed news earlier this week when the ETF’s largest holding, Exxon Mobil (NYSE: XOM) raised its dividend. That extended Exxon’s dividend increase streak, quashing fears that the largest U.S. oil company would respond to lower prices by foregoing its dividend aristocrat status. [Exxon Stays in Dividend ETFs]
Schlumberger (NYSE: SLB) and Kinder Morgan (NYSE: KMI), XLE’s third- and fourth-largest holdings, respectively, have also recently boosted payouts. Exxon, Schlumberger and Kinder Morgan combine for 27.2% of XLE’s weight. The ETF has a dividend yield of 2.35%.
Energy Select Sector SPDR