In this article, we discuss the 5 best shipping stocks that pay dividends. If you want to read our detailed analysis of dividend investing, go directly to the 10 Best Shipping Stocks that Pay Dividends.
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5. SFL Corporation Ltd. (NYSE: SFL)
Dividend Yield: 6.94%
Number of Hedge Fund Holders: 14
SFL Corporation Ltd. (NYSE: SFL) is a Bermuda-based vessel operator that was founded in 2003 and was formerly known as Ship Finance International Limited. It is ranked fifth on our list of 10 best shipping stocks that pay dividends. The chartering company has a fleet of more than 80 bulkers, tankers, container ships, and offshore assets. Aside from oil and chemical transportation, the company also operates in car and drilling rigs transportation as well as dry bulk shipments. On May 12, the company paid its shareholders its 69th consecutive quarterly dividend of $0.15 per share.
The company has a market cap of $1.1 billion. The company’s total operating revenues in the first quarter of 2021 were $109 million, down from $115 million in the previous quarter. SFL Corporation Ltd. earned $31.5 million in net income for the first quarter or $0.27 in earnings per share. Year to date, the stock has returned 38% to investors.
Out of the hedge funds being tracked by Insider Monkey, Los Angeles-based investment firm Oaktree Capital Management is a leading shareholder in SFL Corporation Ltd. (NYSE: SFL) with over 12 million shares worth more than $12.9 million.
4. Matson, Inc. (NYSE: MATX)
Dividend Yield: 1.42%
Number of Hedge Fund Holders: 19
Matson, Inc. (NYSE: MATX) is a Hawaii-based container shipping company founded in 1882 and was formerly known as Alexander & Baldwin Holdings, Inc. It is ranked fourth on our list of 10 best shipping stocks that pay dividends. The company offers freight transportation of perishable commodities, cattle, packaged food and beverages, garments, building materials, and vehicles to retailers, manufacturers, and freight forwarders in Hawaii, Alaska, and Guam, and Micronesia Islands. In addition, the company provides logistic services such as multimodal transportation brokerage services. On April 22, the company declared a cash dividend of $0.23 per share payable on June 2021 to all shareholders. MATX has a PE ratio of 10.2.
The company has a market cap of $2.8 billion. The company’s revenue in the first quarter of 2021 came in at $711.8 million, up from $513.9 million in the first quarter of 2020. For the quarter ended March 31, 2020, the company earned $3.8 million in net income or $0.09 per diluted share. Shares of MATX climbed 126% over the past twelve months.
At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $32 million in Matson, Inc. (NYSE: MATX), up from 14 in the preceding quarter worth $13.5 million.
3. Scorpio Tankers Inc. (NYSE: STNG)
Dividend Yield: 1.79%
Number of Hedge Fund Holders: 20
Scorpio Tankers Inc. (NYSE: STNG) is a Monaco-based crude oil shipping company that was founded in 2009. It is ranked third on our list of 10 best shipping stocks that pay dividends. The shipping firm now operates a fleet of 131 product tankers that service blue-chip oil companies such as Chevron Corporation (NYSE: CVX), BP p.l.c. (NYSE: BP), Royal Dutch Shell plc (NYSE: RDS-A). Scorpio Tankers stock has returned 26% to investors over the past twelve months. Scorpio Tankers Inc. declared a quarterly dividend of $0.10 per share on May 6 payable to shareholders in June.
The company has a market cap of $1.3 billion. The company’s revenue in the first quarter of 2021 came in at $134 million. Scorpio Tankers Inc. earned $46.6 million in net income for the three months ended March 31, 2020, or $0.85 basic and $0.82 diluted earnings per share. The company had $280.1 million in unrestricted cash and cash equivalents as of May 6, 2021. Scorpio Tankers Inc (NYSE: STNG) was given a Buy rating by HC Wainwright & Co. on March 29 with a target price of $28 per share. Shares of STNG jumped 52% in the last three months. The current stock performance of Scorpio Tankers Inc. shows a 52-week-range of $8.28 – $23.37.
At the end of the first quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $88 million in Scorpio Tankers Inc. (NYSE: STNG), up from 18 in the preceding quarter worth $44 million.
2. Genco Shipping & Trading Limited (NYSE: GNK)
Dividend Yield: 1.28%
Number of Hedge Fund Holders: 22
Genco Shipping & Trading Limited (NYSE: GNK) is a New York-based provider of global seaborne dry bulk transportation services that was founded in 2004. It is ranked second on our list of 10 best shipping stocks that pay dividends. As of February 2021, the company owned a fleet of 41 vessels that transports dry-bulk cargoes including iron ore, steel products, coal, and grains. For the first quarter of 2021, Genco Shipping & Trading Limited upped its quarterly cash dividend to $0.05 per share, up from $0.02 per share in March.
The company has a market cap of $662 million. For the first quarter of 2021, the company earned $2.0 million in net income or $0.05 in basic and diluted earnings per share. As of March 31, 2021, the brand has a great financial position with $164.0 million in cash, including $40.8 million in restricted cash. Shares of GNK increased 235% over the past twelve months. On May 6, Jefferies recommended Genco Shipping & Trading as a Buy and raised the price target to $20.
At the end of the first quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $121 million in Genco Shipping & Trading Limited (NYSE: GNK), up from 15 in the preceding quarter worth $142 million.
1. DHT Holdings, Inc. (NYSE: DHT)
Dividend Yield: 2.50%
Number of Hedge Fund Holders: 22
Topping the list of the best shipping stocks that pay dividends is DHT Holdings, Inc. (NYSE: DHT). The Bermuda-based crude oil tanker firm was founded in 2005. DHT Holdings, Inc. had a fleet of 28 very large crude carriers with a total capacity of 8,660,835 deadweight tons as of March 17, 2021, mostly transporting crude oil in Norway, Singapore, and Monaco. The company paid its 45th consecutive quarterly dividend of $0.04 per share to shareholders on May 26. The company has a dividend yield of 2.50% and a PE ratio of 5.2.
The company has a market cap of $1.1 billion. In the first quarter of 2021, the firm earned $11.6 million in net income or $0.07 per basic share. The company invested $136 million on two VLCCs built by DSME (Daewoo) and delivered in February and April 2021. DHT Holdings, Inc. has entered into three separate agreements to sell its three 2004-built VLCCs, DHT Lake, DHT Raven, and DHT Condor, for a total of $88.75 million at the end of the first quarter. On May 25, Evercore ISI Group upgraded DHT Holdings to Outperform. DHT stock has returned 22% to investors year to date.
At the end of the first quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $106 million in DHT Holdings, Inc. (NYSE: DHT), up from 18 in the preceding quarter worth $88 million.
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