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 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!