In this article, we will take a look at some of the best dividend stocks from the shipping sector.
Over the years, seaborne trade has transformed, influenced by containerization, the growth of emerging markets, and changes in production and consumption trends. Today, factors like digital technology, geopolitical shifts, and the drive toward sustainability and climate resilience are reshaping the industry.
According to a UNCTAD report, maritime transport remains the foundation of global trade, handling more than 80% of goods by volume. It plays a crucial role in global supply chains by moving raw materials and semi-finished goods to manufacturing centers and distributing finished products to consumers. These trade flows are essential for industrial development, economic progress, and employment generation.
American shipbuilding is at a pivotal moment, with rising demand putting pressure on current production capacity. The US Navy, the industry’s main client, boosted its shipbuilding budget by an average of 12.5% annually from fiscal year 2020 to 2024. Its latest 30-year plan outlines the construction of 290 to 340 new ships by 2053, as reported by McKinsey & Company. In addition to this domestic demand, there’s also growing pressure to support the AUKUS nuclear submarine partnership between Australia, the US, and the UK.
The report further mentioned that despite this rising demand, shipbuilding output in the US has dropped significantly, largely due to a sharp decline in commercial production. Since the 1950s, US shipbuilding output has shrunk by over 85%, and the number of shipyards capable of constructing large vessels has fallen by more than 80%.
As demand rises and the industry grapples with aging infrastructure and a limited workforce, the US shipbuilding, maintenance, and repair sectors have an opportunity to drive growth by tapping into underutilized domestic capacity.
Given this outlook, we will now take a look at some of the best shipping stocks that pay dividends.
Photo by Shaah Shahidh on Unsplash
Our Methodology
For this list, we picked the top 10 shipping stocks that pay dividends based on their popularity among elite hedge funds in the first quarter of 2025. These stocks belong to companies involved in maritime transportation, which includes container ships, tankers, bulk carriers, and other vessels facilitating global trade. We gauged hedge fund sentiment for these stocks using Insider Monkey’s database of 1,000 hedge funds, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. SFL Corporation Ltd. (NYSE:SFL)
Number of Hedge Fund Holders: 7
SFL Corporation Ltd. (NYSE:SFL) is a leading maritime infrastructure company with a diversified fleet that includes 38 container vessels, 7 car carriers, 18 tankers, 2 energy-related vessels, and 15 dry bulk ships. The company has long-term charter contracts in place, with average durations ranging from under one year for dry bulk to around 7.9 years for car carriers.
As of the reporting period, SFL Corporation Ltd. (NYSE:SFL) had secured approximately $4.2 billion in contracted revenue. The majority of this revenue— 68%— is with investment-grade counterparties, reflecting strong credit quality across its customer base. Containers make up the largest portion of its revenue mix, followed by tankers, car carriers, and energy vessels.
SFL Corporation Ltd. (NYSE:SFL) is also a strong dividend company, having paid regular dividends to shareholders for 85 consecutive quarters. The company offers a quarterly dividend of $0.27 per share and has a dividend yield of 11.56%, as of July 30.
9. Nordic American Tankers Limited (NYSE:NAT)
Number of Hedge Fund Holders: 11
Nordic American Tankers Limited (NYSE:NAT), an international tanker company based in Bermuda, specializes in operating Suezmax crude oil tankers, primarily in the spot market where ships are chartered for individual voyages.
In the first five months of 2025, Nordic American Tankers Limited (NYSE:NAT) added two vessels built in 2016 to its fleet at a total cost of $132 million, while divesting two older vessels from 2003–2004 for a combined $45 million. As of March 31, 2025, NAT reported a cash balance of $103 million. The average time charter equivalent (TCE) for its fleet during the first quarter of 2025 stood at $24,714 per ship per day, with operating expenses amounting to $9,000 per vessel. Including proceeds from the sale of the “Nordic Apollo,” the company posted a net profit of $4.2 million for the quarter.
In addition, Nordic American Tankers Limited (NYSE:NAT) continued to focus on environmental performance by optimizing voyage planning and vessel speed to help reduce emissions. In June, the company declared a 16.2% hike in its quarterly dividend to $0.07 per share. This was the company’s 111th consecutive quarterly dividend, which makes it one of the best dividend stocks from the shipping industry. As of July 30, the stock has a dividend yield of 10.39%.
