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%.
8. Genco Shipping & Trading Limited (NYSE:GNK)
Number of Hedge Fund Holders: 17
Genco Shipping & Trading Limited (NYSE:GNK) operates a fleet of over 40 dry bulk vessels that move commodities across international trade routes. The company offers a dedicated in-house commercial platform to assist clients in managing the transportation of iron ore, grain, steel, cement, and other dry cargo. Recently, it has drawn investor interest following a notable development— Diana Shipping, a well-established Greek dry bulk firm, has acquired a substantial equity stake in Genco worth around $46 million. This move signals a key development for both companies as they adapt to shifting dynamics in the global shipping and logistics sector.
In its first quarter 2025 earnings report, Genco Shipping & Trading Limited (NYSE:GNK) highlighted that drybulk freight rates have seen an improvement starting from March 2025 and continuing into the second quarter, as indicated by the company’s Q2 time charter equivalent (TCE) performance, which stands 18% above the levels recorded in the first quarter. Supported by low financial leverage, a favorable cash flow breakeven rate, and ample access to capital, the company believes it is well-positioned to navigate the ongoing geopolitical volatility.
On May 8, Genco Shipping & Trading Limited (NYSE:GNK) reduced its dividend by 50%, a move that left many investors disappointed. Despite the cut, the company has maintained a relatively consistent track record of paying dividends over time. GEN has been making uninterrupted dividend payments to shareholders for 23 quarters. Its quarterly dividend comes in at $0.15 per share and has a dividend yield of 3.79%, as of July 30.
7. Global Ship Lease, Inc. (NYSE:GSL)
Number of Hedge Fund Holders: 18
Global Ship Lease, Inc. (NYSE:GSL) is an American company that owns a fleet of 69 container vessels, which it leases out to shipping operators through long-term, fixed-rate contracts. Its business model is designed to support major shipping firms by offering additional capacity during periods of strong demand.
In recent years, amid increased uncertainty and market challenges, Global Ship Lease, Inc. (NYSE:GSL) took advantage of favorable conditions to expand its fleet by around 50%, acquiring 23 vessels during a buyer’s market. These additions brought in over $1 billion in EBITDA within their first year, largely through lease agreements with major operators like Maersk.
Global Ship Lease, Inc. (NYSE:GSL) has experienced some ups and downs in its dividend history, yet it continues to follow a consistent dividend policy. The company resumed dividend payments in 2021, following a suspension that began in 2016. Currently, it offers a quarterly dividend of $0.525 per share and has a dividend yield of 3.79%, as of July 30.
6. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Number of Hedge Fund Holders: 21
Star Bulk Carriers Corp. (NASDAQ:SBLK), a Greece-based shipping company listed in the US, operates a fleet of 148 dry bulk vessels that transport global commodities such as grains, fertilizers, minerals, and steel products. The company runs three categories of ships, with an average fleet age of under 10 years, positioning it among the most cost-efficient dry bulk operators worldwide.
Despite facing seasonal market softness in the first quarter of 2025, Star Bulk Carriers Corp. (NASDAQ:SBLK) remained profitable, reporting a net income of $0.5 million, EBITDA of $58.0 million, and a time charter equivalent (TCE) rate of $12,439 per vessel per day. With liquidity exceeding $500 million, net debt below the fleet’s scrap value, and 13 vessels unencumbered, the company views itself as well-positioned to take advantage of opportunities within the dry bulk sector.
Star Bulk Carriers Corp. (NASDAQ:SBLK) also continues to follow a disciplined capital allocation strategy focused on enhancing shareholder value through a mix of dividends and share repurchases. The Board announced a $0.05 per share dividend, marking the 17th straight quarter of capital returns, which have reached approximately $1.35 billion to date. In addition, the company repurchased around 1.3 million shares using proceeds from vessel sales at net asset value, buying back stock at prices well below NAV to capitalize on market dislocations and further boost shareholder returns. With a dividend yield of 7.85%, as of July 30, SBLK is among the best dividend stocks in the shipping sector.
5. Teekay Tankers Ltd. (NYSE:TNK)
Number of Hedge Fund Holders: 23
Teekay Tankers Ltd. (NYSE:TNK) operates a fleet of 37 double-hulled oil and product tankers, including 21 Suezmax and 16 Aframax/LR2 vessels, along with three additional chartered-in tankers. The company typically employs its fleet through a combination of spot market trading and short- to medium-term fixed-rate time-charter contracts.
In the second quarter of 2025, Teekay Tankers Ltd. (NYSE:TNK) reported strong financial performance, with GAAP net income reaching $62.6 million and adjusted net income totaling $48.7 million. Since its May 2025 earnings release, the company has actively advanced its fleet renewal strategy. This includes acquiring a modern Suezmax tanker and agreeing to purchase the remaining 50% stake in the Hong Kong Spirit VLCC. At the same time, the company has capitalized on favorable market conditions by selling five older vessels for a combined total of approximately $158.5 million, which is expected to generate estimated book gains of around $46 million.
Teekay Tankers Ltd. (NYSE:TNK) also holds a consistent dividend policy. The company currently pays a quarterly dividend of $0.25 per share and has a dividend yield of 2.22%, as recorded on July 30.
4. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 23
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) ranks among the major players in the cargo shipping industry, operating a fleet of over 130 vessels, including large container ships that move goods for manufacturing and retail clients.
Although the shipping sector tends to follow a boom-and-bust cycle, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) benefits from having a comparatively modern fleet, which helps reduce fuel consumption and maintenance expenses. In addition, the company holds a strong presence on key global trade routes, particularly those connecting Asia and Europe.
In the first quarter of 2025, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) reported a strong cash position. The company’s operating cash flow for the quarter came in at $855 million, up from $326 million in the same period last year. Its free cash flow also grew from $787 million to $303 million from the prior-year period. During the quarter, it returned $89 million to shareholders through dividends. The company currently pays a quarterly dividend of $0.74 per share.
3. Scorpio Tankers Inc. (NYSE:STNG)
Number of Hedge Fund Holders: 27
Scorpio Tankers Inc. (NYSE:STNG) is a shipping company specializing in the transportation of oil and petroleum products. With a strategic operating model and a seasoned leadership team, the company is focused on delivering long-term performance, meeting complex global regulations, and maintaining high environmental standards.
More than 85% of Scorpio Tankers Inc. (NYSE:STNG)’s fleet is outfitted with exhaust gas cleaning systems (scrubbers), allowing the company to use lower-cost fuels while remaining compliant with environmental regulations, ultimately enhancing returns for shareholders.
In July 2025, Scorpio Tankers Inc. (NYSE:STNG) agreed to bareboat charter its MR tanker, STI Bosphorus, at $13,150 per day (about $21,000 TCE) to a third-party joint venture. The vessel will be reflagged under the US and enrolled in the Tanker Security Program, with the charter running until 2037, subject to annual NDAA renewals. The deal is set to begin in August 2025.
In addition to its growth strategies, Scorpio Tankers Inc. (NYSE:STNG) also remains committed to its shareholder obligations. Over the course of its dividend history, the company has raised its payouts several times and currently offers a quarterly dividend of $0.40 per share. With a dividend yield of 3.50%, as of July 30, STNG is among the best dividend stocks from the shipping sector.
2. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 31
Matson, Inc. (NYSE:MATX) traces its roots back to the late 1800s, originally established to connect the US West Coast with Hawaii. Today, it continues to serve as a key transporter of goods to US Pacific territories and Alaska, while also offering fast, premium shipping services between the US mainland and China.
Matson, Inc. (NYSE:MATX) stands out for its fleet diversity, operating over a dozen vessels, including container ships, custom barges, and combination vessels capable of carrying wheeled cargo like cars, trucks, and railcars. In addition to its shipping operations, Matson runs a logistics division that helps customers coordinate and manage their shipments.
On June 26, Matson, Inc. (NYSE:MATX) declared a 5.9% hike in its quarterly dividend to $0.36 per share. This was the company’s 13th consecutive year of dividend increases, which makes it one of the best dividend stocks. The stock supports a dividend yield of 1.35%, as of July 30.
1. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 57
United Parcel Service, Inc. (NYSE:UPS) is an American multinational shipping and supply chain management company. The company plays a vital role in the global transport system and is expected to recover over time as international trade patterns stabilize.
United Parcel Service, Inc. (NYSE:UPS) has a strong cash position. In its recently announced earnings for the second quarter of 2025, UPS reported an operating cash flow of $2.66 billion, and its free cash flow came in at $742 million.
United Parcel Service, Inc. (NYSE:UPS) also provided a bright outlook for its dividend payments. For 2025, the company expects its payouts to be around $5.5 billion. The company has been growing its payouts for 23 consecutive years, which makes it one of the best dividend stocks to invest in. Currently, it offers a quarterly dividend of $1.64 per share and has a dividend yield of 7.52%, as of July 30.
While we acknowledge the potential of UPS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UPS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Best Materials Dividend Stocks to Buy Right Now and 10 Best and Safe Dividend Stocks to Buy Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
Hedge Fund Resource Center