Seadrill Ltd (SDRL), Macquarie Infrastructure Company LLC (MIC): How to Invest in Dividends Like George Soros

Page 1 of 2

One of the richest men in the world, George Soros, and his aptly named fund Soros Fund Management, is an important firm to keep an eye on. At Insider Monkey, it’s no secret that we track billionaires like Soros, Warren Buffett and David Einhorn, but most coverage is devoted to their favorite stock picks, or their new investments from quarterly 13F filings.

SOROS FUND MANAGEMENT

In Soros’s case, that means Apple Inc. (NASDAQ:AAPL) or Google Inc (NASDAQ:GOOG) from the tech universe (see his favorite tech trades), for example. Now, one underrated area that we can also track hedge fund sentiment is in the world of dividend-paying stocks; let’s take a look at a few that yield above 4% and are loved by Soros. Discover the secrets of piggyback investing here.

Seadrill

In order of income attractiveness, first up is Seadrill Ltd (NYSE:SDRL)’s dividend yield of 8.26%. Soros Fund Management reported ownership of 361,212 shares, worth $13.4 million last quarter. Though it doesn’t get quite the press as larger deepwater players like Transocean LTD (NYSE:RIG) or Noble Corporation (NYSE:NE), and this space as a whole doesn’t get quite the respect as LNG peers in the energy sector, Seadrill Ltd (NYSE:SDRL) is an attractive investment from multiple standpoints.

Obviously, the dividend is one of the best in the oil and gas drilling industry as a whole, and unlike many equities with booming yields, Seadrill Ltd (NYSE:SDRL)’s stock price has been appreciating as of late; shares are up more than 12% year-to-date and 18.4% over the past year.

An intriguing aspect of Seadrill Ltd (NYSE:SDRL) is its ability to attain rig leases that are slightly longer than industry norms. According to the company itself, Seadrill Ltd (NYSE:SDRL) has an average contract length of 26 months, which is lengthier than the long-term averages of most peers, though Noble, for example, sports an average contract length of just over 39 months; generally, longer leases are something the industry is trending toward. This, in turn, leads to an increased certainty of future operations, which allows companies like Seadrill Ltd (NYSE:SDRL) to use debt to fund growth and stimulate shareholder value.

S&P, for example, believes that deepwater rig counts in the Gulf of Mexico will continue to increase, from 33 before the Macondo spill and 37 by the end of last year, “to the mid-40s by 2013 year end.” The ratings agency cites the Gulf’s “importance to the nation’s future energy security” as a key reason to be bullish on this space over the long-term, and there’s no harm in LNG investors also taking a look here when thinking about their energy portfolios as well.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!