In With Seadrill

A while back when discussing my dividend stock portfolio I had mentioned that I was looking to add a new company to the portfolio. Yesterday I finally pulled the trigger and started my position in Sea Drill (SDRL). Not much but it’s a start.

Seadrill is a company that builds and aquires, operates and lease out various oil rig platforms and ships, currently sporting 66 vessels for operations in shallow to ultra deep water. Each rig earns upwards to $500,000.00+ a day for the operations of these rigs and with demand increasing worldwide more rigs are being added and daily rates increase. All pointing to increased revenues for shareholders.

 

Get Off The Fence!

One thing that was hammered home agin with this decision is that if you are buying for the long haul, don’t wait or worry about price. Just get in and dollar cost average. When I was first looking at this stock it was in the low 20’s, I was still reading up on them so was waiting. Then we had a little belt tightening and I wasn’t putting anything into the dividend portfolio. By the time I was ready it was up to $34 so I thought to my self  “self, let’s wait and I’m sure it will dive a little in the next couple days”. It didn’t, even on down days for the Dow it still went up. It did have a little dip on Thursday but I decided to just jump in. If it goes down a bit from here I’ll just buy more and lower my average cost. So I got in at $39 and at the end of the day already showed a profit 🙂

The Yield

As the past few weeks show that this stock has potential for some good growth. They are at the top of their field with contracts at least 10 years out. In fact just today they received a new contract worth 4 billion (and thats just for 3 rigs). Of course I wouldn’t be adding this stock if it didn’t have a dividend and it sure does, bouncing around 8-10%! With a yield like that I am kicking myself that I didn’t get in when I was first thinking about them.

I’m now in though and look to keep building my position while dollar cost averaging my share cost.

Have you considered any new investments lately?