Baker Hughes raises dividend by 10% to $0.23 per share

HOUSTON - Baker Hughes (NASDAQ:BKR), an energy technology firm with a market capitalization of $42.62 billion, has declared a 10% increase in its quarterly cash dividend to $0.23 per share of Class A common stock, to be paid out on February 21, 2025, to shareholders on record as of February 11, 2025. This increment represents a $0.02 rise from the dividend issued in the same quarter of the previous year. According to InvestingPro data, the company has maintained dividend payments for 38 consecutive years, with the current yield standing at 1.95%.

The company, which operates in over 120 countries and generates annual revenue of $27.3 billion, has stated that this dividend will be funded by cash generated from operations. Baker Hughes is known for its century-long history in the energy sector, providing a range of services and technologies aimed at making energy production safer, cleaner, and more efficient. InvestingPro analysis reveals a perfect Piotroski Score of 9, indicating strong financial health, with 10 additional exclusive insights available to subscribers.

This announcement comes as a piece of positive news for investors, signaling the company’s confidence in its financial stability and commitment to returning value to its shareholders. The company’s strong position is reflected in its impressive 50.59% return over the past year and moderate debt levels. According to InvestingPro’s Fair Value analysis, the stock is currently trading near its fair value. Dividend payments are often seen as a reflection of a company’s health and its ability to generate consistent cash flow.

The increase in dividend is based on a press release statement issued by Baker Hughes and reflects the company’s current financial strategy. It is an important consideration for investors who value steady income streams and for those who closely monitor the financial practices of energy sector companies. For deeper insights into Baker Hughes’ financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Baker Hughes has a significant presence in the energy technology space, and its operations span a global market. The company’s advancements in technology contribute to the ongoing evolution of the energy industry, as it seeks to address the world’s growing energy needs while also considering environmental impacts.

With the energy sector constantly adapting to new challenges and opportunities, Baker Hughes’ announcement is a noteworthy development for shareholders and market watchers alike. The company’s ability to maintain and increase its dividend payout is indicative of its position within the industry and its operational success.

In other recent news, Baker Hughes has been at the forefront of several significant developments. The company’s total revenue reached $27.3 billion, with an EBITDA of $4.3 billion over the last twelve months. Notably, the Gas Tech Services segment accounted for approximately 25% of the Industrial Energy Technology (IET) revenue.

In terms of mergers and expansions, Baker Hughes secured a contract for a liquefied natural gas (LNG) project in Louisiana and expanded operations in Namibia with a new liquid mud plant at Walvis Bay Port. Additionally, the company won a major contract to supply six gas compression trains and six propane compressors for the third expansion phase of Saudi Aramco (TADAWUL:2222)’s Jafurah gas field.

On the analyst front, several firms have updated their outlook on Baker Hughes. Benchmark reaffirmed a Buy rating for Baker Hughes stock with a $42 target, JPMorgan maintained its Overweight stock rating with a steady price target of $50.00, while Goldman Sachs and RBC Capital Markets raised their stock targets to $52 and $49, respectively. These developments are among the recent highlights for Baker Hughes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.