Despite slightly lower dayrates from ultra-deepwater floaters this past quarter, and flat EBTIDA expected in the first half of 2014, Seadrill (NYSE: SDRL ) decided to increase its quarterly dividend by $0.03, pushing its current yield over 10%. Fourth-quarter earnings did not meet analyst estimates and, with flat cash flows and a heavily levered balance sheet, Seadrill shares solid off Tuesday. With only short-term softening in the offshore rig industry, did the market get this one right?
Seadrill is a dividend aristocratic, but not the only one
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This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.