Dividend Stocks To Buy #1 — Ensco (ESV)
ESV Dividend Yield: 5.8%
Ensco PLC (ESV) is quickly taking the dividend stocks crown in the deepwater drilling space.
ESV is the second-largest publicly traded offshore driller by fleet size — owning 46 jack-ups, 9 drillships and a host semisubmersibles. The key for ESV and its fleet has been its aggressive new-build program.
This capex spending program has helped transition Ensco towards the lucrative ultra-deepwater sector. Drilling in this market is quite expensive and ESV stock is a direct beneficiary of rental rates pushing $600,000+ per day.
Those juicy day rates have made ESV stock one of the best energy dividend stocks around.
Cash flows at deepwater driller have continued to increase — with ESV reporting record revenues and earnings in 2013. Those cash flows have also helped ESV stock become a champion among dividend stocks. Since 2010, Ensco has increased its quarterly dividend four times. ESV stock even managed to double its dividend payment last year.
All in all, ESV stock now sports an impressive 5.8% dividend yield.