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At # 8 A Solid Dividend Paying Offshore Driller in Seadrill

Seadrill is in great shape and National Oilwell Varco is also primed to profit from increased offshore drilling.

By Joel South and Taylor Muckerman – Sep 20, 2013 at 1:02PM EST

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

Be sure to follow the energy sector on Twitter as well.

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About the Author

Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage. Follow @tmfenergy

XMFTheWhisperer

Stocks Mentioned

ExxonMobil

NYSE: XOM

$158.16

(+0.36%)+$0.57

NOV

NYSE: NOV

$18.57

(+1.75%)+$0.32

BP

NYSE: BP

$45.86

(+2.80%)+$1.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.