While hydraulic fracturing and onshore shale production gets all the energy press and investors’ attention, the action offshore could be an even bigger play. One that leads to some huge opportunities for dividend stocks.
Drilling for oil and natural gas offshore — especially in deepwater — is heating up big time. According to analysts at Wood Mackenzie, the number of deepwater wells drilled each year will increase from the roughly 500 drilled in 2012 to a whopping 1,250 by the time 2022 hits.
All in all, that means some pretty big profits for those firms doing the heavy lifting and drilling. It can also be a fertile hunting ground for those investors looking for dividend stocks.
The deepwater drillers have turned into dividend yield powerhouses as day rates to rent their ultra-modern drilling rigs have skyrocketed in recent years. And given the growth projections for industry, the deepwater drillers should continue pumping out those high dividend yields for years to come.
For investors looking to get a dose of energy sector dividend stocks to their portfolio, the deepwater drillers can’t be ignored. Here are five of the best.