This Oil Stock pays an 10.5% dividend yield. The Norwegian based Stock this analyst has found an Its actually a one of the largest offshore drillers in the world, with an enterprise value of more than $33 billion, so its obviously a well established company as opposed to a high risk Junior. The good news is it trades on the NYSE. While The Gulf oil spill of 2010 delivered a crushing blow to the offshore drilling industry, the author believes offshore drilling industry is on the cusp of a renaissance which opens up the possiblility of capital appreciaion on top of that attractive yield – Money Talks

They’re some of the most reliable dividend-paying stocks on earth.

Each controls a large stake in one of the most universal and depended-on forms of energy in the world, practically guaranteeing it will receive uninterrupted revenue for years to come.

Of course, I’m talking about oil stocks. Their stable demand and reliable dividend payments make oil stocks an undoubted favorite among income investors.

Yet despite being wildly popular in the income universe, most people are missing out on the world’s best opportunities in this sector…

That’s because despite being oil stock, investors think the stocks I’m about to tell you about carry too much risk. They’ve never heard of most of these companies, so they automatically dismiss them as speculative growth plays.

Nothing could be farther from the truth. 

Let me explain…

Many investors seeking a reliable income stream have been flocking to big oil stocks that have paid healthy dividends over the past few years. 

That’s to be expected. The steady income offered by some of these companies easily bests the typical S&P 500 stock. Chevron (NYSE: CVX) for example, pays a 3.6% dividend yield right now — almost double the 1.9% yield offered by the average stock in the S&P 500.

One of the most popular oil stocks around is Exxon Mobil (NYSE: XOM). Next to only Apple, Exxon is the most profitable company in the United States, bringing in an incredible $32.6 billion in profit in 2013. That’s roughly as much profit as behemoths Wal-Mart and J.P. Morgan Chase brought in combined last year.

Yet despite how much profit the company makes, Exxon Mobil’s stock still pays a dividend yield of just 2.6%. 

While I wouldn’t sneeze at a 2.6% yield or even a 3.6% yield, it’s only a fraction of what you can receive from this industry.

In fact, I’ve found an oil stock that pays an 10.5% dividend yield right now. And better yet, unlike traditional oil stocks, it also offers investors the chance to see potentially incredible capital appreciation.

What’s the catch? There isn’t one. It just so happens that this company doesn’t do business in the U.S. But you can buy shares without even leaving the U.S. stock exchanges. 

The stock I’m talking about is SeaDrill (NYSE: SDRL) — one of the largest offshore drillers in the world, with an enterprise value of more than $33 billion and diversification across the shallow, mid and deepwater segments of the market. (Weekly Chart below)

The Norway-based company also has one of the industry’s most modern fleets, best margin profiles and pays a dividend that is roughly three times the yield of the 10-year Treasury note.

When most investors think of large oil stocks, they don’t think about growth. But that’s not the case for SeaDrill.

The Gulf oil spill of 2010 delivered a crushing blow to the offshore drilling industry. With domestic regulators restricting new drilling permits, shares of offshore drillers with and without exposure to the Gulf of Mexico fell sharply.

But now, more than three years later, the offshore drilling industry is on the cusp of a renaissance.

On the heels of new off-shore discoveries, growing global energy demand and the depletion of land wells, the offshore drilling industry is set to grow to $121 billion in 2018 from $73 billion in 2013. That’s a compound annual growth rate of more than 10% in the next five years.

That places the offshore drilling industry in position to deliver big returns — and SeaDrill is primed to take advantage.

The company currently has 21 rigs on order or under construction due for delivery through the end of 2016. With a current fleet count of 69, the new rigs will increase its rig count by 30% in the next three years.

The new rig releases will help drive revenue growth in what is already shaping up to be a strong 2014 for the company. In recent third-quarter results SeaDrill announced it had entered an agreement with PEMEX, the Mexican state-owned petroleum company, to provide five jackup rigs for six years starting in the first half of 2014.

The deal is expected to produce more than $1.8 billion in revenue and provides entry into the Mexican offshore market that should grow substantially in the next few years. 

More importantly, it also increases the company’s backlog of contracted rig services to more than $18 billion and enhances long-term revenue and earnings visibility, with 90% of its fleet booked for 2014 and 60% already booked for 2015.

Strong revenue and earnings growth will support SeaDrill’s two key goals: finance new rig builds and increase dividend payments.

SeaDrill also remains committed to delivering robust dividend payments to shareholders. It paid out $1.4 billion in dividends in 2011, $2.1 billion in 2012 and $930 million in the past two quarters.

It also doesn’t hurt that the company increased its dividend by 8% last year, or that it’s raised its dividend 7% annually for the past five years.

And after its most recent quarterly dividend increase to $0.95 per share, SeaDrill offers a dividend yield of 10.5% at recent prices, or more than three times the return of the 10-year Treasury note’s yield of 2.7%.

Of course with investing, no stock is guaranteed to make you money… even an oil stock. 

But stocks like SeaDrill prove that some of the world’s best high-yield securities aren’t located in the United States. In fact, out of the 118 companies we found paying yields over 12%, only 25 of them are located in the U.S. The other 93 of the world’s highest-yielding stocks are international companies.

Fortunately, many of these are traded publicly on the New York Stock Exchange. To learn more about investing in high-quality international dividend payers and to see a detailed list of stocks paying 12%-plus yields, simply follow this link.

Good investing, 

Michael Vodicka
Chief Investment Strategist
High-Yield International

Bonds and other traditional sources of interest income are still important assets for yield-seeking investors to hold. However, today’s investment environment—a combination of low interest rates, slow growth in developed economies and heightened market volatility—means that investors have to look to a variety of sources to build robust, sustainable income portfolios. Yields from dividend-paying stocks on the whole are attractive, even more so when compared to government bonds. Investing in a high-quality name with strong fundamentals can increase the likelihood that a given investor will continue to be paid dividends. As such here is a list of high quality US divident stocks that the author believes are of extremely High Quality. – Money Talks

5 All-Around Dividend Rock Stars

Not every band is of Rolling Stones caliber, and not every dividend stock is of Procter & Gamble [NYSE: PG] caliber.

In fact, there is a special group of dividend stocks that Standard & Poor’s keeps track of that it calls the “Dividend Aristocrats.” These dividend payers don’t just pay a dividend. They’re not just any old company that’s had a few dividend increases. No, these dividend maestros have — as S&P puts it — “followed a policy of increasing dividends every year for at least 25 consecutive years.”

Impressed?

You should be. Because when a company has a 25-plus year streak of paying and raising its dividend, you better believe investors are feasting on impressive compounding returns.

Meet the aristocrats

As you might expect, the Dividend Aristocrats are an elite group.

In fact, of the 500 companies in the S&P 500 index, only 54 of them currently qualify for the title. And while most of the companies on that list could make solid investments, there are some that stand out above the rest of the pack.

The five stocks below are some of the greatest businesses in existence.

They each have what we Fools like to call a “moat,” that is, a competitive advantage that allows them to consistently earn above-average returns. Their inclusion on the Dividend Aristocrat list shows their consistent dedication to returning cash to investors. And while it’s tough to find businesses of this quality at bargain-basement prices, all trade at attractive valuations.

…to read the entire Dividend Report go HERE

Jim Rogers on how the risk of a coming Economic collapse and financial crisis is rising. It could come at any moment now he says.

He thinks that those that get informed about the collapse and crisis could earn a fortune on the short side, or at the very least prevent the loss of a lot of money.

Rogers also talks about the amazing materil Graphene which is lighter than paper and stronger than steel. Rogers made billions in the Quantum fund and always has interesting things to say. As usual, he is well worth listening to in this 4 minute interview – Money Talks

“I’ve been noting the prices being paid by the wealthy 5% of Americans and by foreigners may be a sign of things (prices) to come.  Is the $19 billion that Facebook paid for What’sApp a hint of future prices?  It occurred to me that the extraordinary prices being paid by today’s wealthy could correspond to the hyperinflationary prices that we will see 3-5 years in the future.  Thus I think today’s wealthy are establishing the hyperinflationary prices that we may see in all items during the next 3-5 years. 

If this is true, we should see the entire stock market moving higher, as it discounts future hyperinflationary prices.  If hyperinflation is to be our future, the one tangible currency, gold, should be our best protection.  If hyperinflation is in our future, then gold and the stock market should now be discounting it.  The fact that we have not had a 10% correction in the stock market since 2011 speaks of the stubborn bullishness of this stock market. 

If I’m correct in that hyperinflation is in our future, we should shortly see new highs in the various stock market indices and a further parade of record prices for tangibles at auctions and in the news.  Also, if hyperinflation is in our future, then gold and silver are dirt cheap today. 

I dreamed last night … In my dream I was telling people that the whole stock market will shortly be lifting up from an oversold base.  I was telling people that the prices of everything will be rising until at some point hyperinflation finally takes over.  At that point the trillions of dollars that the Fed has injected into the banking system will suddenly seize the market and all tangibles in its grip.  The price level of everything will levitate to meet the astounding levels that we now see in auction prices and in the news. 

I believe all primary trends run to conclusion.  All primary trends end in exhaustion and extremes in blue chip prices.  The primary bear market that started in 2008 was never allowed to run its full course to completion.  At the 2009 low, the market was severely oversold and in need of a “rest.”  At that same time a terrified Federal Reserve stepped in with massive infusions of liquidity, thereby giving impetus to the upward correction that had started in the stock market.  I believe the Fed’s machinations will set off hyperinflation somewhere during the next two to four years.  I believe hyperinflation will be followed by a continuation of the primary bear market. 

In my 65 years of dealing with markets, I was always dealing with fair supply-and-demand markets.  The Fed’s manipulation of the markets upsets the old “rules” of supply and demand.  I believe that when this primary bear market breathes its last, the US public will be furious with the Fed.  At some time in the future, the Fed will be perceived as a menace to the nation and will be abolished by an act of Congress.

Late Notes — Today’s action was pretty much as expected. The Dow gave us the usual hundred point pop, confirmed with a 32 point rise in the Transports.  Gold continued its sterling performance, along with higher prices in silver.  Stay with your gold positions and if you haven’t done so yet, add CEF to your portfolio.

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One of the favorite features of the Letter is Russell’s daily Primary Trend Index (PTI), which is a proprietary index which has been included in the Letters since 1971. The PTI has been an amazingly accurate and useful guide to the trend of the market, and it often actually differs with Russell’s opinions. But Russell always defers to his PTI. Says Russell, “The PTI is a lot smarter than I am. It’s a great ego-deflator, as far as I’m concerned, and I’ve learned never to fight it.”

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“Rich Man, Poor Man (The Power of Compounding)“

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Two pieces of business news announced this week provide a convenient frame through which to view our dysfunctional and distorted economy. The first (which has attracted tremendous attention), is Facebook’s blockbuster $19 billion acquisition of instant messaging provider WhatsApp. The second (which few have noticed) is the horrific earnings report issued by Texas-based retail chain Conn’s. While these two developments don’t seem to have much in common, together they shed some very unflattering light on where we stand economically.

Given the size and extravagance of the Facebook deal, it may go down as one of those transactions that define an era (think AOL and Time Warner). Facebook paid $19 billion for a company with just 55 employees, little name recognition, negligible revenues, and little prospects to earn much in the future. For the same money the company could have bought American Airlines and Dunkin’ Donuts, and still have had $2 billion left over for R&D. Alternatively they could have used the money to lock in more than $1 billion in annual revenue through an acquisition of any one of the numerous large cap oil producing partnerships. Instead they chose a company that is in the business of giving away a valuable service for free. Come again?

Mark Zuckerberg, the owner of Facebook, is not your typical corporate CEO. Through a combination of technological smarts, timing, luck, and questionable business ethics, he became a billionaire before most of us bought our first cars. And in the years since social media became the buzzword of the business world, Wall Street has been falling over backward to funnel money into the hot sector. As a result, it may be that Zuckerberg looks at real money the way the rest of us look at Monopoly money. It also helps that a large portion of the acquisition is made with Facebook stock, which is also of dubious value.

But even given this highly distorted perspective, it’s still hard to figure out why Facebook would pay the highest price ever paid for a company per employee – $345 million (more than four  times the old record of $77 million per employee, set last year when Facebook bought Instagram). The popular talking point is that the WhatsApp has gained users (450 million) faster than any other social media site in history, faster even than Facebook itself. Based on its rate of growth, the $42 per user acquisition cost does not seem so outrageous. But WhatsApp gained its users by giving away a service (text messaging) for which cellular carriers charge up to $10 or $20 per month. It’s very easy to get customers when you don’t charge them, it’s much harder to keep them when you do.

Boosters of the deal expect that WhatsApp will be able to charge customers after the initial 12-month free trial period ends (it now charges 99 cents per year after the first year). Based on this model, the firm had revenues of $20 million last year. But what happens if another provider comes in and offers it for free? After all, the technology does not seem to be that hard to replicate. Google has developed a similar application. More importantly, no one seems to be projecting what the cellular carriers may do to protect their texting cash cows.

WhatsApp gives away what AT&T and Verizon offer as an a la carte texting service. As these carriers continue to lose this business we can expect they will simply no longer offer texting as an a la carte option. Instead it will likely be bundled with voice and data at a price that recoups their lost profits. If texting comes free with cell service, a company giving it away will no longer have value. People will still need cellular service to send mobile texts, so unless Facebook acquires its own telecom provider, it can easily be sidelined from any revenue the service may generate.

Some say that texting revenue is unimportant, and that the real value comes from the new user base.  But how many of the 450 million users it just acquired don’t already have Facebook accounts? And besides, Facebook itself hasn’t really figured out how to fully monetize the users it already has. In other words, it is very difficult to see how this mammoth investment will be profitable.

From my perspective, the transaction reflects the inflated nature of our financial bubble. The Fed has been pumping money into the financial sector through its continuous QE programs. The money has pushed up the value of speculative stocks, even while the real economy has stagnated. With few real investments to fund, the money is plowed right back into the speculative mill. We are simply witnessing a replay of the dot com bubble of the late 1990’s. But this time it isn’t different.

In another replay of that spectacular crash fourteen years ago, the appliance and furniture retailer Conn’s has just showed the limits of a business built on vendor financing. In the late 1990’s telecom equipment companies almost went bankrupt after selling gear to dot com start-ups on credit. For a while, these “sales” made growth and profits look great, but when the dot coms went bust, the equipment makers bled. Conn’s makes its money by selling TVs and couches on credit to Americans who have difficulty scraping up funds for cash purchases. For a while, this approach can juice sales. Not surprisingly, Conn’s stock soared more than 1500% between the beginning of 2011 and the end of 2013. These financing options are part of the reason why Conn’s was able to keep up the appearance of health even while rivals like Best Buy faltered in 2013.

But if people stop paying, the losses mount. This is what is happening to Conn’s. The low and middle-income American consumers that form the company’s customer base just don’t have the ability to pay off their debt. The disappointing repayment data in the earnings report sent the stock down 43% in one day.

In essence, Conn’s customers are just stand-ins for the country at large. In just about every way imaginable, America has borrowed beyond its ability to repay. Meanwhile our foreign creditors continue to provide vendor financing so that we can buy what we can’t really afford.

So thanks for the metaphors Wall Street. Too bad most economists can’t read the tea-leaves.