1 More Reason Investors Should Love Ensco

By Tyler Crowe – Nov 6, 2013 at 8:04PM

OTC: VAL

Valaris plc

Want another reason to like investing in Ensco aside from getting Seadrill-like growth while exhibiting capital discipline like Transocean and Diamond drilling? Then perhaps a 50% dividend hike is what you were looking for.

There are lots of reasons to like rig company Ensco (VAL). With a young fleet of ultra-deepwater rigs, a standardized rig design to lower maintenance times, and several new rigs coming online in the next couple years, Ensco probably should, like Seadrill (SDRL), be considered a top player in the rig space.

If Ensco's strategic position in the rig industry isn't enough to convince you, then perhaps the company's recent move to raise its dividend by 50% might. Tune into the video below to find out why Ensco has the best qualities of Seadrill, Transocean (RIG -0.69%), and Diamond Offshore (DO) in one company and whether it will be able to maintain this hefty 5.5% dividend yield over the long term.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him on Twitter @TylerCroweFool. The Motley Fool recommends and owns shares of Seadrill. It also owns shares of Transocean. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.