This doesn't make sense at all. 125% of EPS is being given out as DIVIDEND to shareholders.
This stupid decision is coming at the cost of dedicated employees.
This company is going down
6 replies (most recent on top)
Look at SLB's income statement. Dividends are not deducted rom net income, they show up on the cash flow statement.
The EPS metric is after accounting for the dividend payout. The right way to read this is that over half (~55%) of what income SLB earned was paid out to shareholders, not 125% of income.
http://www.investopedia.com/terms/e/eps.asp?o=40186&l=dir&qsrc=999&qo=investopediaSiteSearch
so, how much do we get per share?
Slb used to be a great place to work as an employee. For the last decade it has been all for shareholders. I don't think they even care about profit as long as they can continue to fool the shareholders that it is a well run company. It's too big to fail now so it works!
shareholders own the company, employees work there. Dedication is a nice touch but not worth a dime in time like this, grow up!
If we pay out more dividend than we earned it is financed with debt. This erodes future earnings to pay current dividends. Chevron is guilty of this for over a year. Look at IBM and CAT who had been doing this for years. Also don't forget we floated debt to buy back shares that have lost value over the last year and caused our credit rating to be downgraded.