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Strategies & Market Trends : Dividend investing for retirement

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To: Jacob Snyder who wrote (9895)11/30/2011 3:53:53 PM
From: Jacob Snyder  Read Replies (2) of 34328
 
RIG, Transocean, the dominant global deep-water oil driller:

The obvious problems with RIG are:
1. inconsistent dividend history. I'm making the assumption management means their recent commitment to becoming a dividend stock.
2. payout ratio way too high. The past year's earnings were affected by the BP/Macondo spill. This, I'm assuming, is a non-recurring event. Looking at their long-term earnings, and assuming deepwater drilling is a LT growth industry, the current dividend is sustainable.

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