07-22-2014, 09:32 PM
Added a small opening position in Ensco plc (ESV) in my wife's portfolio yesterday. A P/E of 9 vs. 10 year average of around 11, their investment in new deepwater rigs, debt/equity of about 35% and a payout ratio in the low 40's after a couple huge increases over the last couple years augurs well. They've not been big dividend growers in the past but I think management is changing their attitude. Their fleet is fairly new. They are willing to invest in the business on spec and seem to have a plan going forward focussing on deeper water operations. At 5.6% yield and the P/E, I'm looking at it more as a value play with a dividend kicker. If they keep bumping up the dividend at a reasonable rate, it may be a longer term holding.

