This 5.5%-Yielding Dividend Isn’t Going Away
Oil prices have bounced around quite a bit over the past few years, which has held back the anticipated recovery in the oilfield services market. Instead of the "V-shaped" rebound that oil reservoir specialist Core Labs (NYSE: CLB) anticipated, the chart has looked more like a "W." As a result, Core's earnings and cash flow have fluctuated quite a bit. So much so, that the company hasn't always generated enough cash to cover its dividend. That has put pressure on its stock price, causing the yield to rise as investors and analysts have begun to question the payout's long-term sustainability.
Core's dividend yield recently topped 5.5%, and touched the highest level in the company's history. Because of that, it was a top subject of discussion on the second-quarter conference call. While Core's management team acknowledged investors' concerns, they also made it clear that maintaining the payout remains a top priority.
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Source Fool.com
