Dividend Stocks To Buy — #3 Transocean (RIG)
RIG Dividend Yield: 5.3%
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.