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May 20, 2020, 6:57 a.m. EDT

Halliburton slashed dividend by 75%, stock gains

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By Tomi Kilgore

Shares of Halliburton Co. /zigman2/quotes/210488727/composite HAL -3.21% rose 1.4% in premarket trading Wednesday, after the oil services company slashed its quarterly dividend by 75%, citing efforts to maintain a strong liquidity position given uncertainties regarding the depth and duration of the downturn in market conditions. The new dividend of 4.5 cents a share, down from 18 cents a share, will be payable June 24 to shareholders of record on June 3. Based on Tuesday's stock closing price of $11.15, the new annual dividend rate implies a dividend yield of 1.61%, compared with the yield for the SPDR Energy Select Sector ETF /zigman2/quotes/206420077/composite XLE -2.96% of 6.07% and the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.31% of 1.97%. Separately, Halliburton said annual retainers for its board of directors will be cut by 20%. The dividend cut comes as crude oil futures /zigman2/quotes/209723049/delayed CL00 -0.20% have plunged 47.4% year to date, as the COVID-19 pandemic has reduced demand and as the market grapples with a supply glut. Halliburton's stock has declined 54.5% this year, while the energy ETF has shed 37.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.31% has lost 9.5%.

/zigman2/quotes/210488727/composite
US : U.S.: NYSE
$ 21.99
-0.73 -3.21%
Volume: 11.54M
June 18, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.82%
Market Cap
$19.56 billion
Rev. per Employee
$361,125
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/zigman2/quotes/206420077/composite
US : U.S.: NYSE Arca
$ 52.39
-1.60 -2.96%
Volume: 56.91M
June 18, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,166.45
-55.41 -1.31%
Volume: 3.62B
June 18, 2021 5:09p
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/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 71.50
-0.14 -0.20%
Volume: 120,976
June 18, 2021 4:59p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,166.45
-55.41 -1.31%
Volume: 3.62B
June 18, 2021 5:09p
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