Baker Hughes (BKR) Rewards Shareholders With Dividend Hike

Baker Hughes’ BKR board of directors announced an increase in quarterly cash dividends. The raised quarterly dividend of 21 cents per share of Class A common stock is payable on Feb 23, to the common stockholders of record as of Feb 13.

This dividend hike reflects a 5% sequential and an 11% year-over-year increase. This reflects the oilfield service player’s strong commitment to returning capital to shareholders.

Remarkably, Baker Hughes has plans to fund its dividend payment through operating cashflows. This reflects the company’s strong confidence in its business, which will likely remain favorable this year. With oil prices trading at more than the $70 per barrel mark, there are incentives for increasing exploration and production activities. Thus, demand for oilfield services and equipment will increase since companies like Baker Hughes help upstream players in efficiently setting up oil and gas wells.

Zacks Rank and Key Picks

Currently, BKR carries a Zacks Rank #3 (Hold).

Investors might want to look at some better-ranked stocks in the energy sector, such as Vaalco Energy EGY, First Solar, Inc.  FSLR and Repsol REPYY. While Vaalco currently sports a Zacks Rank #1 (Strong Buy), First Solar and Repsol both hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. With a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.

First Solar is a market leader in comprehensive PV solar energy solutions. It specializes in designing, manufacturing and selling solar electric power modules. The company sells its products to project developers, system integrators and renewable energy project operators based out of Europe, particularly Germany. With the rising global trend to shift toward renewable energy solutions, the outlook for First Solar seems bright.

Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. Recently, it announced the expansion of its network of renewable fuel refilling stations in Europe, demonstrating its commitment to a sustainable energy model.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

First Solar, Inc. (FSLR) : Free Stock Analysis Report

Vaalco Energy Inc (EGY) : Free Stock Analysis Report

Repsol SA (REPYY) : Free Stock Analysis Report

Baker Hughes Company (BKR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research