Not to be outdone, Noble Corporation (NYSE:NE) has grown this year right alongside its competitors. In addition, Noble offers a unique proposition for investors, in that its operations are highly diversified geographically. The company has very effectively spread its bets across the globe. No single geographic area represents more than 31% (the Gulf of Mexico) of the company’s revenue. In addition, Noble Corporation (NYSE:NE) generated 20% of its revenue from Brazil, 19% from the Middle and Far East, 14% from Europe, and 10% from Mexico.
This strategy has clearly worked to Noble’s advantage. The company realized quarter-over-quarter increases in most metrics, including revenue and diluted earnings per share. In all, Noble produced 5% growth in revenue and 17% growth in diluted EPS in its second quarter, as compared to its first-quarter results.
Another high-performing driller is ENSCO PLC (NYSE:ESV), an interesting play because of the remarkable progress made since 2008. Quite simply, ENSCO PLC (NYSE:ESV) has drastically restructured itself over the past five years. In 2008, Ensco was exclusively involved in jackups, which accounted for 96% of its revenue. Today, the company is much more diversified, and jackups represent a much more reasonable 35% of revenue. Floaters now comprise the majority of the company’s revenue mix.
It’s abundantly clear that Ensco’s efforts have paid off. Since 2008, revenues have doubled, to $4.6 billion today. The company’s market capitalization has growth from $5 billion in 2008 to $17 billion today, and its annual dividend per share has skyrocketed from $0.10 per share five years ago to its current level of $2.00 per share.
Drill deep for growth and income
Not only are Transocean, Seadrill Ltd (NYSE:SDRL), Noble, and Ensco poised to profit handsomely from the global surge in offshore drilling, but their management teams are seriously committed to sharing their success with shareholders. This is accomplished primarily in the form of hefty dividends.
While the S&P 500 Index yields approximately 2%, each of these stocks provides a much greater yield. Ensco and Noble yield 3.6% and 2.6% at recent prices, respectively, which are solid yields that compare very favorably to the broader market. Meanwhile, Transocean yields 4.7%, and Seadrill Ltd (NYSE:SDRL) does even better, with a nearly 6% yield according to Yahoo Finance.
As a result, both growth and income investors will find a lot to like from this group. Transocean, Seadrill, Noble, and Ensco have strong growth ahead, and their investors will likely prosper right along with them.
Looking For Even More Dividends in you Portfolio?
Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notoriety of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine.
The article Why The Future is Bright For These Offshore Drillers originally appeared on Fool.com and is written by Robert Ciura.
Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill and Transocean.
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