I have been using Sikkens Cetol oil finish for 20 years without any issues. Lettering enamel sticks to it fine. They make a waterbased version and I'm trying it on a few small projects, but the oil based stuff is real good on cedar. Here are a few pics of the signs in my makeshift carving shop right now, and a couple finished ones. If after a few years the finish looks dull, a quick rub with a scotchbrite pad, and then a wipe with a Cetol dipped rag gets 'em looking good again for the next few years.