National-Oilwell Varco, Inc. (NOV): What’s The Growth Looking Like?

Moreover, offshore opportunities for Varco could outweigh any slowdown in onshore drilling. The company commented last quarter that its outlook for deepwater rig orders is far more optimistic than much of the rest of the industry, pointing to continued strong demand and high rates as evidence. That’s consistent with the results we saw from Core Laboratories N.V. (NYSE:CLB) last week, which has gotten a lot of its growth recently from its emphasis on international deepwater plays.

In Varco’s quarterly report, watch to see if the company finally starts paying a more reasonable dividend. With just an 8% payout ratio, even concerns about future growth prospects shouldn’t hold the company back from returning more of its earnings to shareholders.

The article Can National Oilwell Varco Keep Growing? originally appeared on Fool.com.

Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Halliburton and National Oilwell Varco. The Motley Fool owns shares of National Oilwell Varco.

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