Diamond Offshore (DO)
Industry: Oil service and exploration
Market Capitalization: $6.7 billion
Total Return Since 3/9/2009: 20%
Diamond Offshore (DO), an oil service stock that focuses on deepwater drilling, has been nothing but bad news since 2009. Share prices remain slightly in the red compared with the bear market low, but thanks to dividends it has managed to post a total return of 20%.
But note: If you’re measuring from the 2009 highs instead of March 9, share prices are more than 50% lower.
Also note that dividends totaled $8 per share in 2009 before dropping to $5.25 in 2010 and then $3.50 in 2011 – where payouts have stayed.
As oil prices crashed and deepwater drilling became less profitable (and also less popular thanks to the Deepwater Horizon disaster), Diamond Offshore has had a rough go of things … and its 16% declines in the first few months of 2014 show that the pain might not be over yet.