Chuck, What happens is these high div. stocks are what people are chasing, and as demand dries up over several qtrs. people feel more secure in their purchase prices so they hang on longer,which tends to drive the pps up over time. The risk is always an unforeseen event that can drop the pps very fast if the div. looks to be threatened or the market takes a nose dive.
I have seen many div. payers that once traded much lower, gain strength over time and now trade at higher levels.
Some of these stocks are reits like agnc and others are like line energy.
In the current environment sdrl looks good to me anywhere from 37-39 for a buy, and Iv'e traded this for a long time.
Elstock, I believe you're actually being too cautious and perhaps too pessimistic.
I keep reading that many companies are turning away from RIG because of
their antiquated Rigs and turning to Sea Drill's new State-Of-The-Art Deep Water
Rigs. Thinking very long term - I believe 4 years from now after Obama has left
the White House - Deep Water drilling will explode.