re: Seadrill (SDRL) has a yield of 0%.

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SDRL risks are fully reflected in the stock.
SDRL's rig utilization rate, minimal short-term debt obligations, and industry-best dividend are all reasons to buy.
Oil is historically volatile, and will recover until a large scale alternative is found.
Concerns of dividend risk are overstated, if not illogical given SDRL's recent history.

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the price of oil, and oil demand will naturally fluctuate over the years, but historically has risen. Therefore, given the large investments that Seadrill made in its rigs, the most important thing for long-term investors is that rigs are being utilized, approximately 90% to 95% of rigs under contract. In 2015 Seadrill faces the risk of, maybe, three of its 51 in-the-water operating rigs not being under contract, giving it a utilization rate of 94%.

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Even if Seadrill were, by some chance, to cut its dividend in half, that's still a 9% yield at current prices, and better than just about any other company in the market. So in retrospect, who cares if Seadrill does cut the dividend, its payout will still trump all competitors, thus making dividend-related fears seemingly irrelevant.

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All things considered, investors really need to put Seadrill's current 18.5% dividend in perspective. With the stock trading at near 52-week lows with losses in excess of 50% over the last year, Seadrill's dividend serves as a great hedge. After Seadrill's stock losses, and with it trading at just 6.6 times next year's expected earnings, investors have 18.5% of downside protection over the next year.

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As a result of these favorable scenarios, including Seadrill's valuation and the degree of loss that would have to occur for a negative investment return, it seems almost crazy to sell shares of Seadrill right now. There's just too much stock upside, and very little downside due to the size of its dividend.

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