Huge Dividend Stock Showdown: Annaly Capital vs. Seadrill

In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other, and you, the reader, will determine the winner.

Today it's the Quarter-Final stage, and Annaly Capital takes on Seadrill in our search for the better stock.

Bracket showing companies that advanced from the group stages

Financials analyst David Hanson believes the number one reason Annaly Capital Management (NYSE: NLY  ) should win this match is the company's dirt cheap valuation. Shares of Annaly has rarely been this cheap in the company's very successful history, and management's recent push into the commercial real estate space should allow its portfolio to achieve higher yields without much additional leverage. The ride isn't likely to be smooth, but long-term investors can collect hefty dividends along the way as the company finds better yielding opportunities. 

Joel South, energy analyst at The Motley Fool, thinks Seadrill  (NYSE: SDRL  ) is more than worthy of your consideration today. Successful investors have been building significant wealth for years by finding solid, high dividend paying stocks. Seadrill sports an industry leading 10% yield and with solid contract coverage and a fleet of new drilling rigs, investors can count on Seadrill to be among the best offshore drillers in the world.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks like Annaly and Seadrill simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Vote here to determine the winner of this match and sound off in the comments box below. Check back to Fool.com to see who advances in the tournament.


Read/Post Comments (1) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 24, 2014, at 2:08 AM, VAContrarian wrote:

    Seadrill is priced for perfection and management's recent comments portend a downturn in business and rig rates. NLY is currently the safer bet with a slightly higher yield.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3004460, ~/Articles/ArticleHandler.aspx, 10/22/2014 2:32:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement