At # 8 A Solid Dividend Paying Offshore Driller in Seadrill
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 . 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
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
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The article At # 8 A Solid Dividend Paying Offshore Driller in Seadrill originally appeared on Fool.com.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends National Oilwell Varco and Seadrill. The Motley Fool owns shares of National Oilwell Varco and Seadrill. Try any of our Foolish newsletter services free for 30 days. 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.
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