4 Promising Dividend Stocks in Oil and Gas

Investors are caught in between, especially when it comes to oil stocks. On one end of the spectrum, oil companies are taking advantage of rising energy prices and, hence, increasing production, while on the other end, a rerun of last August's bear market is capable of unnerving even savvy investors. In short, the unpredictability is too big a factor to ignore. The way out So where does an investor stand who wants to invest in oil without taking too many risks? The answer lies in dividend stocks. A steady stream of income is a time-tested way of getting the better of volatility in the markets and uncertainty in returns. Here are four dividend stocks you should be looking into and that I believe should help you beat the markets in the long run:
Seadrill (NYSE: SDRL): There's no denying that oil-field services are going to witness a substantial surge in business with increased exploration and production activity anticipated in the next few years. The buzzword here is offshore drilling. Easy and conventional sources of oil are fast disappearing and E&P companies are racing to make discoveries in the deep sea across the globe. Global offshore drilling is steadily gathering steam with the African, Australian, and Asian markets leading the way. According to analysts, the offshore rig demand is estimated to increase by 12%-19% in two years. This is where offshore driller Seadrill is a runaway winner. Fellow Fool Travis Hoium also argues that this driller's focus on deepwater has it positioned better to create value in the long term. A growing demand for the company's drilling units has seen available rigs fall substantially, and this trend should continue in the future. This company has already been generating healthy returns, and now with a dividend yield of 9%, this has been among the most generous in the oil services industry. A sound business and a very good dividend yield. In short, a value stock.... Read more