Dividend income investors have been taking notice of offshore drillers in the current market as depressed prices in the industry have inflated yields. One of the largest in the industry, Transocean (NYSE:RIG), has felt the downward pressure of its stock price as it recently touched on 52 week lows. This drop in price also pushed the current annual yield of the stock above 7%.
There is great deal of bullish and bearish sentiment surrounding offshore drillers. Bears primarily point to decreasing demand for underwater rigs, increased competition, and significant drops in day rates as compared to their peak levels. Bulls note that this industry is typically cyclical, that many companies still have a strong backlog for their rigs, and that current stock prices present a good value.
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