This top oil services company came in with results that beat expectations. Schlumberger Ltd. (NYSE: SLB) remains the largest oilfield services company in the world for now, with far-reaching operations all around the globe, and it could be poised for years of solid growth despite the huge turn down in oil pricing. Top Wall Street analysts think the company will continue to drive margins on execution, technologies and efficiencies. Russia, Saudi Arabia, Iraq and China are expected by some to be the strongest markets, if geopolitical concerns remain somewhat in check.
The company reported solid first-quarter earnings, and revenues come in slightly above Wall Street estimates. Recent reports have indicated the company may be looking to buy back its former Iranian unit. The report also noted that Schlumberger sold Well Services of Iran to Nima Energy, a Hong-Kong based holding company, when it left Iran, and the sales-agreement reportedly included a provision that could give the oil services giant “First right to buy back the company when sanctions were lifted,” per Dow Jones news.
Schlumberger investors receive a 2.55% dividend. The consensus price target is $87.41. Shares closed Monday at $79.40.
This is a very diversified company with large government contract exposure. United Technologies Corp. (NYSE: UTX) is an industrial that provides high-technology products and services to aerospace industries and building systems worldwide. Its segments are UTC Climate, Otis, Controls & Security, UTC Aerospace Systems, and Pratt & Whitney.
Many Wall Street analysts believe the company is strategically positioned to benefit from two megatrends in the long-term: urbanization and commercial aerospace. The company received good news recently as the military and foreign buyers are set to increase purchase of the F-135 Jets. UTC’s Pratt & Whitney division, which builds the F135 engine for the military, earns a superb 22.5% profit margin on its products.
United Technologies investors receive a 2.53% dividend. The consensus price target is $111.50. The stock closed Monday at $104.37.
Solid blue chip stocks paying good dividends make sense now. The political cycle is in full swing and that could lead to a volatile summer as we head to the conventions. These are outstanding holdings for long-term, patient portfolios.
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