Tuesday, March 15, 2011
High Yield Shipping Stocks
Besides utilities and telecom stocks, there aren't many other sectors that pay high yields. One high dividend industry that hasn't received much attention recently is shipping. There are two primary types of shippers, the liquid shippers which transport crude oil, petroleum products, and liquefied natural gas, and the dry bulk shippers, which transport iron ore, coal, grain, minerals, fertilizers, and other non-liquid items.
Shipping stocks generate fairly significant dividends with more than 15 yielding in excess of 3%, according to the free list that was recently updated by WallStreetNewsNetwork.com. For example, Nordic American Tanker Shipping Ltd. (NAT) is a liquid shipper that yields 4%. The stock trades at 40 times forward earnings. Unfortunately, revenues were down 23.8% for the latest reported quarter; the company reports next earnings on May 4.
International Shipholding Corp. (ISH) is a dry bulk shipper with a 6.5% yield, and trades at 10.7 times earnings. Revenues for the latest quarter were down 35.8%. The earnings announcement is April 25.
Another high yield dry bulk shipper is Navios Maritime Holdings Inc. (NM) paying 4.4%, and a price to earnings ratio of 4.3. Earnings for the latest quarter were up 27.7%, with earnings rising over 300%. The company reports May 23.
For a free list of over 20 high dividend shipping stocks, go to WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.