Despite slightly lower dayrates from ultra-deepwater floaters this past quarter, and flat EBTIDA expected in the first half of 2014, Seadrill (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
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. To learn the identity of these stocks instantly and for free, all you have to do is click here now.
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.