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I am completely shocked that Schlumberger Limited (NYSE:SLB) is down -24.65% over the past year, and shares have declined by -7.02% in 2025. Despite a double miss on earnings expectations in Q1, SLB is trading for 10.69 times its
Schlumberger: Is An Undervalued Dividend Growth Play In The Oil Sector
Summary
- SLB is undervalued, trading at less than 11x FCF, with strong financials, robust capital returns, and growing dividends, despite recent share price weakness.
- Technological advancements in digital, AI, and data center solutions are driving growth, diversifying revenue, and enhancing resilience beyond traditional oilfield services.
- SLB's disciplined capital allocation, low debt, and commitment to $4B in shareholder returns position it for capital appreciation and dividend growth.
- With rising global energy demand, favorable macro trends, and a recovering oil market, I see SLB as a compelling value and income opportunity for investors.
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SLB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
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