Another Dose of Good News for Energy ETFs

Markit expects some XLE constituents that “reduced their payouts this year, including National Oilwell Varco (ticker: NOV) and Anadarko Petroleum (APC), to maintain them at current levels in 2017. Also on the plus side, 12 S&P 500 energy firms have announced payout boosts this year,” reports Barron’s.

SEE MORE: Earnings Recovery Could Lift Energy ETFs

Rebounding earnings are supportive of a more optimistic dividend outlook for the energy sector.

As ETF Trends reported last week: While energy companies are expected to be the largest contributor to earnings decline for the S&P 500 in the third quarter, the stabilizing crude oil prices and potential production cutbacks from major oil producers could help support sector-related exchange traded funds.

Some analysts expect the energy sector will become a positive contributor to earnings growth for the S&P 500 by the first quarter of 2017 due to a combination of higher expected oil prices and easier comparisons to weak earnings in 2016.

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