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Strategies & Market Trends : Dividend investing for retirement

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To: deeno who wrote (21214)	11/26/2014 12:47:44 PM
From: JimisJim	Read Replies (4) of 34328

Although, I note in the official news release that SDRL will be using some of the $2 billion in savings from divvy suspension to do share buyback: "SDRL expects the dividend pause to strengthen its capital position by $2B/year, which would be used to strengthen the balance sheet and invest in value-creating opportunities; the board authorizes a *share buyback program of up to 10% of outstanding shares over the coming 12 months." I've made my mixed feelings wrt to share buybacks vs. outright divvies pretty clear, but I guess it's better than nothing and in a sense, JF (the majority shareholder) will be increasing his holdings on the cheap, thus in the LT, increasing his own divvy income... Time will tell if he's playing this correctly, but I still think the fundamentals of SDRL make it a prime/solid spec play candidate* for cash one does not count on having for retirement sustenance. If it were to go completely under due to the sector fundamentals, so would 80% of all offshore OSX companies and I seriously doubt that will happen.

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