Lead Portfolio Manager Jacques Elmaleh of Steinberg Global Asset Management says ENSCO PLC (ESV) is a more cyclical stock than he would normally invest in, but he was reeled in by the dividends.
“The stock is going to pay about $3 in dividends per year. They raised it, and that is what caught our attention and brought us into this stock,” Elmaleh said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Elmaleh says ENSCO is an inexpensive stock, and though the industry is a bit cyclical, the dividend is well-covered and he’s expecting a good yield.
“Although there is a little bit of a low in the offshore drilling market, when it does turn, we are getting paid to wait, and there’s a lot of upside there,” Elmaleh said. “In the meantime, we are getting a yield that’s almost 6%.”
Ensco plc (ESV) Begins to Reap Rewards of Early Offshore Drilling Capex and is Poised to Return Cash to Shareholders
February 26, 2013
Exxon Mobil Corporation (NYSE:XOM) Earning Its Cost of Capital to Pay Dividends
October 13, 2016
Canadian Life Insurance Companies Pay High Dividends With Strong Capital Positions
May 15, 2020
Recommended Reading – Bailout Executive-Pay Curbs Use Loophole-Rich Tax Law (Update1)
September 29, 2008
Recommended Reading – The Right Way to Pay the CEO of GM, Forbes
May 29, 2009
