Drill Deep With These 5 Dividend Stocks

For investors looking for dividend stocks in the energy sector, deepwater drillers can't be ignored. Here are five of the best.

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Drill Deep With These 5 Dividend Stocks

Dividend Stocks To Buy — #3 Transocean (RIG)

Transocean185 150x150 Drill Deep With These 5 Dividend StocksRIG Dividend Yield: 5.3%

Transocean (RIG) has dealt with the aftermath of BP’s (BP) Deepwater Horizon spill quite eloquently and is now one of the best deepwater dividend stocks out there.

Since the spill, RIG has undergone a major transition to remove or sell many of its shallow water drilling operations and focus on the deepwater space. That shift has also included purchasing new ultra-modern drillships.

And like ESV and SDRL, RIG has benefited from higher day rates for these vessels.

Currently, RIG stock comes with a juicy 5.3% dividend yield. However, management at Transocean recently announced that they are planning on distributing $3 per share in dividends during 2014.

While the measure still needs to be voted on, the odds of it passing are pretty good — especially considering activist investor Carl Icahn still owns a ton of RIG stock and has been pushing for more cash to be returned to shareholders. That will give RIG stock a whopping 7% dividend yield.

Better still is RIG’s potential plans to spin out assets into a MLP. Like SDRL, that move could help make RIG stock into a more powerful dividend payer via the tax-advantaged distributions.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/dividend-stocks-sdrl-rig-pacd-esv-ne/.

©2014 InvestorPlace Media, LLC

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