In this article, we discuss the 10 oil tanker stocks that pay dividends. If you want to read about some more oil tanker stocks, go directly to 5 Oil Tanker Stocks That Pay Dividends.
The surge in oil prices as a result of the Russian invasion of Ukraine has resulted in a lot of bullish analysis around the energy sector in recent weeks. According to the United States Energy Information Administration, the spot prices of Brent crude oil averaged $97 per barrel in February, an increase of almost $11/by month-on-month. The daily spot prices for Brent were higher in the first week of March due to the war in Ukraine, climbing to around $124 per barrel at one point. The Ukraine events pressured already low oil inventories.
A short-term energy outlook released by the administration projects that oil prices will likely average $116/b in the second quarter of 2022 and drop down to around $102/b in the second half of 2022. In 2023, the prices are forecast to fall all the way down to $89/b. The EIA claims that global consumption of petroleum and liquid fuels will average 100 million barrels per day for all of 2022, up more than 3 million barrels per day from the previous year. The EIA has warned that the outlook for Russia and other neighboring countries remains “highly uncertain”.
This mini-boom for the oil sector has served as a major growth for oil stocks in the past few weeks. Some of the top oil stocks benefiting as a result of the geopolitical tensions and supply-demand discrepancies include Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), among others. Oil tanker stocks in particular have seen a major boost as a result of the developing situation. Some of these oil tanker stocks that pay dividends are discussed below.
Our Methodology
The companies that operate in the oil tanker sector and pay dividends to shareholders were selected for the list. The analyst ratings, business fundamentals, and growth catalysts of the stocks are also discussed to provide some additional context to readers. Shipping stocks related to the oil industry were also considered. The forward dividend yield of each stock is mentioned as well.
Hedge fund sentiment was included as a classifier as well. Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
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Oil Tanker Stocks That Pay Dividends
10. Capital Product Partners L.P. (NASDAQ:CPLP)
Number of Hedge Fund Holders: 4
Forward Dividend Yield: 3.46%
Capital Product Partners L.P. (NASDAQ:CPLP) is a marine transportation firm based in Greece. The firm transports a variety of cargoes and container goods under short-term charters. The company has paid a dividend to shareholders consistently for the past fourteen years. In a sector where the median in this regard is just 2 years, this performance has attracted the interest of institutional investors. On January 24, the firm declared a quarterly dividend of $0.15 per share, an increase of 50% from the previous dividend of $0.10 per share.
Other financial indicators of Capital Product Partners L.P. (NASDAQ:CPLP) also paint a rosy picture. In early February, the firm reported earnings for the fourth quarter of 2021, beating market estimates on earnings per share and revenue by $1.60 and $8 million respectively.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Capital Product Partners L.P. (NASDAQ:CPLP) with 169,929 shares worth more than $2.7 million.
At the end of the fourth quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $5.1 million in Capital Product Partners L.P. (NASDAQ:CPLP), compared to 5 in the preceding quarter worth $6.5 million.
Just like Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), Capital Product Partners L.P. (NASDAQ:CPLP) is one of the stocks that hedge funds are monitoring as energy prices rise.
9. Nordic American Tankers Limited (NYSE:NAT)
Number of Hedge Fund Holders: 6
Forward Dividend Yield: 1.68%
Nordic American Tankers Limited (NYSE:NAT) is a Bermuda-based tanker company. The firm operates a fleet of 25 Suezmax crude oil tankers. The firm has paid a dividend to shareholders consecutively for the last 23 years. On March 3, it declared a quarterly dividend of $0.01 per share, in line with previous. The stock has soared in recent weeks as oil tanker rates rise for key shipping routes in the Black Sea due to the Russian invasion of Ukraine. High fuel prices have also proved to be a growth catalyst for the stock.
On February 9, Nordic American Tankers Limited (NYSE:NAT) concluded two 6-year time charters for two Suezmax new-buildings. These are slated for delivery in early summer of this year and will contribute $100 million to the revenue.
At the end of the fourth quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $12 million in Nordic American Tankers Limited (NYSE:NAT), the same as in the preceding quarter worth $6 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Nordic American Tankers Limited (NYSE:NAT) with 6 million shares worth more than $10 million.
8. Costamare Inc. (NYSE:CMRE)
Number of Hedge Fund Holders: 12
Forward Dividend Yield: 2.87%
Costamare Inc. (NYSE:CMRE) owns and charters containerships. The firm has a fleet of 76 containerships and 45 dry bulk vessels. The company has an impressive dividend history, considering the sector in which it operates. It has paid a dividend to shareholders for the past decade. On April 1, it declared a quarterly dividend of $0.115 per share, in line with previous. It also declared a special dividend of $0.50 per share. Both will be payable to shareholders by late April or early May.
On May 9, Costamare Inc. (NYSE:CMRE) posted earnings for the fourth quarter of 2021, reporting a revenue of $283 million, up more than 138% compared to the revenue over the same period last year. The shares jumped 4% after the firm released the earnings.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Costamare Inc. (NYSE:CMRE) with 2.1 million shares worth more than $27 million.
At the end of the fourth quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $55 million in Costamare Inc. (NYSE:CMRE), the same as in the preceding quarter worth $65 million.
7. SFL Corporation Ltd. (NYSE:SFL)
Number of Hedge Fund Holders: 12
Forward Dividend Yield: 6.67%
SFL Corporation Ltd. (NYSE:SFL) operates as a maritime and offshore asset owning and chartering company. The company has a reliable history with regards to dividend payouts stretching back 17 years. On February 16, it declared a quarterly dividend of $0.20 per share, an increase of more than 11% from the previous dividend of $0.18 per share. The shares have climbed over 20% in the past six months as geopolitical tensions and rising energy prices serve as double catalysts for the stock.
However, not everything is on the up and up for the firm. On February 18, DNB Markets analyst Martin Borter downgraded SFL Corporation Ltd. (NYSE:SFL) stock to Hold from Buy but raised the price target to $10 from $9, noting that the company’s strong dividend proposed for the fourth quarter should lift the valuation but that the stock has been “repriced to reflect the company’s current potential”.
At the end of the fourth quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $54 million in SFL Corporation Ltd. (NYSE:SFL), compared to 13 in the previous quarter worth $57 million.
6. International Seaways, Inc. (NYSE:INSW)
Number of Hedge Fund Holders: 14
Forward Dividend Yield: 1.28%
International Seaways, Inc. (NYSE:INSW) owns and runs a fleet of oceangoing vessels for the transportation of crude oil and petroleum products. Improving tanker rates have served to boost the share price of the firm in the past few weeks. The company is a relatively new entrant into the dividend space, registering two consecutive years of payouts to shareholders recently. It remains to be seen whether the firm can continue to be reliable with these payouts since it missed market estimates on earnings per share and revenue for the fourth quarter of 2021.
International Seaways, Inc. (NYSE:INSW) is a strong player in the oil transportation sector with a fleet of 83 vessels. These include 12 chartered-in vessels and ownership interests in two floating storage and offloading service vessels.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Cyrus Capital Partners is a leading shareholder in International Seaways, Inc. (NYSE:INSW) with 3.9 million shares worth more than $58 million.
At the end of the fourth quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $97 million in International Seaways, Inc. (NYSE:INSW), the same as in the previous quarter worth $107 million.
Along with Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), International Seaways, Inc. (NYSE:INSW) is one of the stocks that elite investors are monitoring as interest rates rise.
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Disclosure. None. 10 Oil Tanker Stocks That Pay Dividends is originally published on Insider Monkey.
