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Seadrill Limited Or Seadrill Partners, Which One Is A Better Investment?

Along with its third-quarter 2014 earnings report on November 26, 2014, Seadrill Limited (SDRL) announced suspension of dividend. In my previous article about SDRL I wrote:

I also don't think that the suspension of dividend distributions for the time being should be considered as a negative development since it was the right thing to do under the current market conditions.

However, most investors have not shared my and other analysts' opinion, and the stock plunged 22.79% in the same trading day (SDRL reported before the market open), and continued to fall. Moreover, other leading offshore drilling companies that are keeping paying dividends have their stocks decreased at a lower rate on the day of the announcement and later on, as shown in the table below.

(click to enlarge)

Investors that have been disappointed by SDRL decision to suspend dividend, can find an attractive alternative in Seadrill Partners LLC (SDLP), which… Read More …