Consider Sticking with Yield until Offshore Drilling Rebounds

Consider Sticking with Yield until Offshore Drilling Rebounds (Barron’s)

As North America continues to redefine the oil and natural gas landscape, another sector is getting swamped in its wake: offshore energy exploration. A significant reduction in available contracts has many of the biggest names in shipping putting the brakes on capital spending. Until such time that the shipping market bounces back, industry experts such as Morgan Stanley’s Ole Slorer and Jacob Ng recommend playing shipping companies with a robust yields. “Our favorite yield plays include Seadrill, Seadrill Partners and North Atlantic Drilling,” they said. Today, Seadrill (SDRL) offers an 11.2 percent yield, as well as a safe port until the shipping storm blows over.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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