In a surprise move, offshore driller Seadrill Limited ( NYSE: SDRL ) raised its dividend in the face of a difficult market for new contracts. The company even faced some operating issues during the first quarter, yet that didn't prevent solid earnings and cash flows from supporting the dividend. At the time, investors couldn't grasp the 11% dividend considering the large debt load and 19 newbuilds under construction in a tough offshore drilling market. The stock has now rallied, and investors need to understand that the bifurcation of the market provides long-term stability for a company with limited rigs older than 10 years. Companies with older rigs like Transocean ( NYSE: RIG ) face a tougher road with limited contract coverage for 2015, so why is the market still allowing Seadrill to pay a high 10% dividend yield? Read the full article here . Disclosure: Long SDRL. Please read the disclaimer page for more details.