Fat Dividends and Profits in Oil Serviceshttp://www.fool.com/investing/general/2013/02/08/fat-dividends-and-profits-in-oil-services.aspx Selena Maranjian
February 8, 2013
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some oil services stocks to your portfolio, the Market Vectors Oil Services ETF (NYSE: OIH) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.
Why oil services?
More than a handful of oil services companies had strong performances over the past year. Seadrill (NYSE: SDRL), for example, gained 12%. One of the world's largest oil and gas offshore drillers, it operates in the most profitable deepwater drilling regions, among other locations. Bears don't like its debt levels or negative free cash flow, while bulls drool at its whopping 8.7% dividend yield.
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Weatherford International (NYSE: WFT), for example, sank 26%, partly due to an estimate that it will pay millions in settlements to multiple U.S. agencies investigating possible improper practices abroad. The company has been plagued by accounting-related problems as well and remains challenged by low gas prices and low margins related to an Iraqi contract.
National Oilwell Varco (NYSE: NOV) slipped 18%. It's the b