Schlumberger dividend may already factor in black swan event, analyst says

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Schlumberger’s (SLB +10.7%) dividend yield is “implying a market expectation of a dividend cut,” but there is a “good chance that the dividend is not reduced” this year, says AltaCorp analyst Waqar Syed in reiterating his Outperform rating and $31.50 price target on the stock.

Schlumberger’s board reviews its dividend annually each January and includes a “stress test” which includes political and operational disruptions, and Syed believes it “likely considered black swan type events while setting the dividend for 2020.”

The company also boasts “superior” liquidity, Syed says.

SLB’s average Sell Side Rating is Bullish, while its Seeking Alpha Authors’ Rating and Quant Rating are both Neutral.

Source: dailystockbuzz

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