Marine Transportation Stocks Have Avoided Treacherous Waters In 2022: Check Out 3 Smaller Players With High-Yield Dividends

Zinger Key Points
  • The SonicShares Global Shipping ETF provides pure-play exposure to the global maritime shipping industry.
  • Based on market performance, Diana Shipping has had the best market return out of the three stocks listed.
Marine Transportation Stocks Have Avoided Treacherous Waters In 2022: Check Out 3 Smaller Players With High-Yield Dividends

Many marine shipping companies have been reporting a solid year earnings-wise. 

ZIM Integrated Shipping Services Ltd. ZIM saw its operating income in the second quarter increase by 52% year-over-year to $1.76 billion. The SonicShares Global Shipping ETF BOAT provided pure-play exposure to the global maritime shipping industry, and is only down about 8% year-to-date.

In a choppy market, the right marine shipping stocks may steer your portfolio into smoother waters.

Based on market performance, Diana Shipping Inc. DSX has had the best market return out of the three stocks listed below, up over 16% year-to-date.

Additionally, these three small caps have room to grow as Market Research Future forecasts the dry bulk shipping market to reach a market volume of 6.8 billion tons and expand at 5.10% compounded annual growth rate from 2020 to 2027.

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• Diana Shipping Inc. DSX is offering a dividend yield of 24.34% or $1.10 per share annually, making quarterly payments, with an inconsistent track record of increasing its dividend payments.

Diana Shipping provides transportation services for various goods including coal, iron ore and grains. It also transports minor bulks, including steel products, cement and fertilizers through its dry bulk carrier vessels.

Diana Shipping currently has a fleet of 36 dry bulk vessels (4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax and 3 Ultramax) and ​​expects to take delivery of 6 Ultramax dry bulk vessels in the fourth quarter of 2022.

• Genco Shipping & Trading Limited GNK is offering a dividend yield of 13.58% or $2 per share annually, using quarterly payments, with a track record of increasing its dividends once in the past years.

Genco Shipping & Trading is an international shipping company specializing in the transportation of iron ore, coal, The company has a fleet of 44 dry cargo vessels consisting of Capesize, Ultramax and Supramax vessels that provide an essential link in international trade.

• Euroseas Ltd ESEA is offering a dividend yield of 9.73% or $2 per share annually, through quarterly payments, with an inconsistent track record of increasing its dividends.

Euroseas operations are managed by an affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Its fleet consists of 18 vessels, including 10 Feeder containerships and 8 Intermediate containerships, that transport container boxes providing scheduled service between ports.

Euroseas has plans to have 27 containerships after the delivery of nine feeder container ships in 2023 and 2024.

Photo: Aun Photographer via Shutterstock

 

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