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The market experienced a large decline yesterday to continue the pullback that has been in place since the beginning of the month. Indices are heading to their worst monthly performance since May 2012. The excuse for sell-off yesterday was the crisis developing in Syria, but the market has been overdue for a significant correction for quite some time.

I have prepared for this eventually by keeping a good amount of cash on hand within my portfolio. I am now starting to deploy that capital on dips. I am focused on growing the high yield portion of my portfolio. With oil prices heading up sharply and hitting six month highs, allocating to high yielding energy plays seems prudent. Here are two good income plays within the energy sector that I plan to add to on the next sell-off.

Seadrill Limited (NYSE:SDRL) provides offshore drilling services to the oil and gas industry worldwide. Its services include drilling, completion, and maintenance of offshore wells; production drilling and well maintenance; and well services. This energy play has been a solidly performing core position in my income portfolio since 2012. It seems an appropriate time to revisit the company's investment thesis given it just reported stellar results that beat on the top and the bottom line.

The company pays a dividend that provides an over 8% yield and has consistently & frequently raised its payout over the last couple of years. Revenue growth is solid with the company tracking to just over 10% sales increases this fiscal year. With some newbuilds coming online in the near term, analysts expect revenue gains to accelerate to almost a 20% increase in FY2014. The stock sports a five year projected PEG of under 1 (.57) and is priced at just over 12x next year's consensus EPS expectations.

KNOT Offshore Partners (NYSE:KNOP) is a U.K.-based company that owns and operates shuttle tankers that service major oil and gas companies engaged in offshore production, such as Statoil (NYSE:STO) that are on long-term contracts. This company just came public in April, but its parent company (Knutsen NYK) has been around for over 100 years. The shares yield ~6% annually after a recently announced ~20% bump in its distribution payout.

In addition to its high yield, the company has solid growth prospects. It currently has only 4 vessels in its fleet but has at least five tankers identified as potential drop-downs from the parent company. Analysts expect revenues to increase some 40% in FY2014. Revenues are highly predictable given the long term contracts the company operates under and its fleet is running at pretty much full capacity. Earnings are tracking to ~90 cents a share of profit this year with earnings expected to increase to some $1.30 a share in FY2014.

Source: Buying High Yield Plays On The Dip