Can Seadrill Stay Afloat in a Sinking Rig Market?

Offshore rigs have been an extremely hot commodity over the past several quarters, but the users of these rigs are starting to complain that the rent is too damn high. With Big Oil players cutting back spending programs, rig owners are starting to see dayrates fall. With the most ambitious growth plans and a highly levered balance sheet, Seadrill (NYSE: SDRL  ) looks like it may be affected more than its peers. Surprisingly, though, the company may be in better shape than many might think.

Even though the prices around Seadrill are starting to fall, it has still been able to secure top-dollar contracts for rigs that will complete construction in 2014, and the breakeven costs for Seadrill's fleet is well below the target range of the current market dayrates. Find out more about why Seadrill is in a better position than competitors such as Transocean (NYSE: RIG  ) , Diamond Offshore (NYSE: DO  ) , and Noble  (NYSE: NE  ) by tuning into the video below.

Does Seadrill's whopping 8.3% dividend make our list of top dividend stocks?

One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. Find out if Seadrill was worthy enough to make our list of stocks instantly and for free, all you have to do is click here now.

 


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