Introduction
Recently, an analyst at CFRA Research highlighted six energy sector companies that they believe are at risk of reducing their dividends in the short to medium term. One of these companies is the midsized oil and gas producer, Murphy Oil (MUR) which currently sports a modest dividend yield of approximately 4%. Since initially reducing their quarterly dividend by 28.57% during 2016, they have been able to maintain their payments; however, perhaps this may be coming to an end.
Dividend Coverage
When assessing dividend coverage, I prefer to forgo using earnings per share