In this segment, Motley Fool analysts Joel South and Taylor Muckerman discuss companies 10-6 of their Top 20 energy companies to watch. Companies 10-6 can be found here.
Market dynamics look good for offshore drillers, with crude prices above $100 per barrel and, according to Wood Mackenzie, deepwater spending is estimated to rise from $43 billion last year to $114 billion in 2022. A solid investment to play this growth is Seadrill (SDRL +0.00%). This company leases out the youngest fleet in the space, offering safer vessels that command higher day rates and exceptional utilization rates.
In addition, Seadrill offers investors a substantial forward dividend yield of 7.6%. With more than $15 billion in contract backlogs, a world-class fleet of offshore vessels, and an industry-leading dividend, Seadrill looks like a clear winner.
Strong dividends to consider
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