8 Best Marine Shipping Stocks to Invest In

2. Star Bulk Carriers Corp. (NASDAQ:SBLK)

Number of Hedge Fund Holders: 27

Star Bulk Carriers Corp. (NASDAQ:SBLK) operates as a prominent player in the global shipping industry and it specializes in the transportation of dry bulk cargoes. This includes both major commodities like iron ore, minerals, and grain, as well as minor bulks such as bauxite, fertilizers, and steel products. The company ranks 2nd among our best marine shipping stocks to invest in.

With an impressive capacity to transport over 70 million metric tons of cargo annually, the company plays an important role in connecting suppliers to markets worldwide. Its subsidiary, Star Bulk (Singapore) Pte. Ltd., supports this service by effectively bridging the gap between the origination and destination of these dry bulk commodities.

Recently, Star Bulk (NASDAQ:SBLK) made an essential move by selling the Capesize vessel m/v Star Triumph, which was the oldest in its fleet, for a gross price of $20 million. After settling associated debts, the net proceeds from this sale amount to approximately $13 million.

Following this transaction, the company’s fleet will consist of 153 owned vessels, with a total carrying capacity of 15 million deadweight tons (dwt). The fleet includes various types of vessels: Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax. The fleet ranges in carrying capacities from 53,489 dwt to 209,537 dwt, which allows it to adapt to different shipping needs and market demands.

In April, the company successfully completed its merger with Eagle Bulk Shipping Inc., which further strengthened its market position. The merger has allowed the company to advance its operational scale and capabilities.

As of August 1, the conversion of Eagle’s 5.00% Convertible Senior Notes into Star Bulk common stock has been completed, facilitating a smoother integration process. The company aims to achieve $50 million in cost and revenue synergies from the merger by 2025, which could significantly boost profitability and operational efficiency.

In addition to its growth strategies, Star Bulk (NASDAQ:SBLK) is focused on returning capital to its shareholders. The last declared dividend of $0.70 marks the fourteenth consecutive payment, which is a sign of the company’s focus on shareholder value. Since June 2021, it has distributed over $1.25 billion in dividends.