Energy Stock for High Yield

[dan_s]

Seadrill Limited (SDRL) is being added to our High Yield Income Portfolio. The annual yield is approximately 9%, based on Friday’s closing price. I do expect the company to increase their dividend this year. You can find my company profile on Seadrill under the Watch List Tab.

I have decided to drop Evolution Petroleum’s pfd stock (EPM-PA) and Magnum Hunter’s Series D pfd stock (MHR-PD) from the portfolio. I now believe EPM will call the preferred stock at par ($25) shortly after the Delhi Field reaches payout, which should happen within six months. Magnum Hunter is having some problems, so I think it is best to move them to the sidelines until we can see some current financial statements. MHR may be fine since I have not seen any negative operations updates.

We are starting to get first quarter results from our Sweet 16 Growth Portfolio companies. Helmerich & Payne (HP), Range Resources (RRC) and Whiting Petroleum (WLL) all reported strong results. You can find my updated forecast models for each company under the Sweet 16 Tab on our website.

[dan_s]

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. Its services include drilling, completion, and maintenance of offshore wells; production drilling and well maintenance; and well services. The company has a P/E ratio of 12, below the S&P 500 P/E ratio of 17.7. Seadrill has a market cap of $16.61 billion and is part of the basic materials sector and energy industry.