The current economic condition favors high dividend paying companies as a better investment than bonds, as inflationary conditions continue to erode the value of a bond. This article discusses three such companies, which also have high revenue visibility making them a safe investment option.
Undervalued dividend stock: Seadrill Limited (NYSE:SDRL) is an offshore deep-water drilling company. Master limited company masters in dividend: Terra Nitrogen Company, L.P (NYSE: TNH) is a master limited company and has a current yield of 8.60%. Another offshore stock: Teekay Offshore Partners L.P (NYSE: TOO) is a provider of marine transportation, oil production and storage services to the offshore oil industry. Investment in these stocks will cumulatively give an annual dividend of around $25. Moreover, the return can be expected to increase given the undervaluation of Seadrill, strong and high payout of Terra Nitrogen and good revenue visibility of Teekay. These stocks can be considered good investments on a medium to long-term perspective.
Source: Motley Fool
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