In this article, we discuss the 10 oil tanker stocks that pay dividends.
The surge in oil prices as a result of the Russian invasion of Ukraine has resulted in a lot of bullish analysis around the energy sector in recent weeks. According to the United States Energy Information Administration, the spot prices of Brent crude oil averaged $97 per barrel in February, an increase of almost $11/by month-on-month. The daily spot prices for Brent were higher in the first week of March due to the war in Ukraine, climbing to around $124 per barrel at one point. The Ukraine events pressured already low oil inventories.
A short-term energy outlook released by the administration projects that oil prices will likely average $116/b in the second quarter of 2022 and drop down to around $102/b in the second half of 2022. In 2023, the prices are forecast to fall all the way down to $89/b. The EIA claims that global consumption of petroleum and liquid fuels will average 100 million barrels per day for all of 2022, up more than 3 million barrels per day from the previous year. The EIA has warned that the outlook for Russia and other neighboring countries remains “highly uncertain”.
This mini-boom for the oil sector has served as a major growth for oil stocks in the past few weeks. Some of the top oil stocks benefiting as a result of the geopolitical tensions and supply-demand discrepancies include Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), among others. Oil tanker stocks in particular have seen a major boost as a result of the developing situation. Some of these oil tanker stocks that pay dividends are discussed below.
Our Methodology
The companies that operate in the oil tanker sector and pay dividends to shareholders were selected for the list. The analyst ratings, business fundamentals, and growth catalysts of the stocks are also discussed to provide some additional context to readers. Shipping stocks related to the oil industry were also considered. The forward dividend yield of each stock is mentioned as well.
Hedge fund sentiment was included as a classifier as well. Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
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Oil Tanker Stocks That Pay Dividends
10. Capital Product Partners L.P. (NASDAQ:CPLP)
Number of Hedge Fund Holders: 4
Forward Dividend Yield: 3.46%
Capital Product Partners L.P. (NASDAQ:CPLP) is a marine transportation firm based in Greece. The firm transports a variety of cargoes and container goods under short-term charters. The company has paid a dividend to shareholders consistently for the past fourteen years. In a sector where the median in this regard is just 2 years, this performance has attracted the interest of institutional investors. On January 24, the firm declared a quarterly dividend of $0.15 per share, an increase of 50% from the previous dividend of $0.10 per share.
Other financial indicators of Capital Product Partners L.P. (NASDAQ:CPLP) also paint a rosy picture. In early February, the firm reported earnings for the fourth quarter of 2021, beating market estimates on earnings per share and revenue by $1.60 and $8 million respectively.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Capital Product Partners L.P. (NASDAQ:CPLP) with 169,929 shares worth more than $2.7 million.
At the end of the fourth quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $5.1 million in Capital Product Partners L.P. (NASDAQ:CPLP), compared to 5 in the preceding quarter worth $6.5 million.
Just like Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), Capital Product Partners L.P. (NASDAQ:CPLP) is one of the stocks that hedge funds are monitoring as energy prices rise.
9. Nordic American Tankers Limited (NYSE:NAT)
Number of Hedge Fund Holders: 6
Forward Dividend Yield: 1.68%
Nordic American Tankers Limited (NYSE:NAT) is a Bermuda-based tanker company. The firm operates a fleet of 25 Suezmax crude oil tankers. The firm has paid a dividend to shareholders consecutively for the last 23 years. On March 3, it declared a quarterly dividend of $0.01 per share, in line with previous. The stock has soared in recent weeks as oil tanker rates rise for key shipping routes in the Black Sea due to the Russian invasion of Ukraine. High fuel prices have also proved to be a growth catalyst for the stock.
On February 9, Nordic American Tankers Limited (NYSE:NAT) concluded two 6-year time charters for two Suezmax new-buildings. These are slated for delivery in early summer of this year and will contribute $100 million to the revenue.
At the end of the fourth quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $12 million in Nordic American Tankers Limited (NYSE:NAT), the same as in the preceding quarter worth $6 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Nordic American Tankers Limited (NYSE:NAT) with 6 million shares worth more than $10 million.
8. Costamare Inc. (NYSE:CMRE)
Number of Hedge Fund Holders: 12
Forward Dividend Yield: 2.87%
Costamare Inc. (NYSE:CMRE) owns and charters containerships. The firm has a fleet of 76 containerships and 45 dry bulk vessels. The company has an impressive dividend history, considering the sector in which it operates. It has paid a dividend to shareholders for the past decade. On April 1, it declared a quarterly dividend of $0.115 per share, in line with previous. It also declared a special dividend of $0.50 per share. Both will be payable to shareholders by late April or early May.
On May 9, Costamare Inc. (NYSE:CMRE) posted earnings for the fourth quarter of 2021, reporting a revenue of $283 million, up more than 138% compared to the revenue over the same period last year. The shares jumped 4% after the firm released the earnings.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Costamare Inc. (NYSE:CMRE) with 2.1 million shares worth more than $27 million.
At the end of the fourth quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $55 million in Costamare Inc. (NYSE:CMRE), the same as in the preceding quarter worth $65 million.
7. SFL Corporation Ltd. (NYSE:SFL)
Number of Hedge Fund Holders: 12
Forward Dividend Yield: 6.67%
SFL Corporation Ltd. (NYSE:SFL) operates as a maritime and offshore asset owning and chartering company. The company has a reliable history with regards to dividend payouts stretching back 17 years. On February 16, it declared a quarterly dividend of $0.20 per share, an increase of more than 11% from the previous dividend of $0.18 per share. The shares have climbed over 20% in the past six months as geopolitical tensions and rising energy prices serve as double catalysts for the stock.
However, not everything is on the up and up for the firm. On February 18, DNB Markets analyst Martin Borter downgraded SFL Corporation Ltd. (NYSE:SFL) stock to Hold from Buy but raised the price target to $10 from $9, noting that the company’s strong dividend proposed for the fourth quarter should lift the valuation but that the stock has been “repriced to reflect the company’s current potential”.
At the end of the fourth quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $54 million in SFL Corporation Ltd. (NYSE:SFL), compared to 13 in the previous quarter worth $57 million.
6. International Seaways, Inc. (NYSE:INSW)
Number of Hedge Fund Holders: 14
Forward Dividend Yield: 1.28%
International Seaways, Inc. (NYSE:INSW) owns and runs a fleet of oceangoing vessels for the transportation of crude oil and petroleum products. Improving tanker rates have served to boost the share price of the firm in the past few weeks. The company is a relatively new entrant into the dividend space, registering two consecutive years of payouts to shareholders recently. It remains to be seen whether the firm can continue to be reliable with these payouts since it missed market estimates on earnings per share and revenue for the fourth quarter of 2021.
International Seaways, Inc. (NYSE:INSW) is a strong player in the oil transportation sector with a fleet of 83 vessels. These include 12 chartered-in vessels and ownership interests in two floating storage and offloading service vessels.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Cyrus Capital Partners is a leading shareholder in International Seaways, Inc. (NYSE:INSW) with 3.9 million shares worth more than $58 million.
At the end of the fourth quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $97 million in International Seaways, Inc. (NYSE:INSW), the same as in the previous quarter worth $107 million.
Along with Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), International Seaways, Inc. (NYSE:INSW) is one of the stocks that elite investors are monitoring as interest rates rise.
5. Scorpio Tankers Inc. (NYSE:STNG)
Number of Hedge Fund Holders: 15
Forward Dividend Yield: 1.91%
Scorpio Tankers Inc. (NYSE:STNG) engages in the transportation of refined petroleum products. The firm is one of the reliable oil tanker stocks with regards to dividend payouts. For the past eight years, the firm has consistently paid a dividend to shareholders. On February 14, the firm declared a quarterly dividend of $0.10 per share, in line with previous. The company recently announced that it had entered into an agreement to sell three vessels and raise more than $112 million from the sales.
On March 3, Bank of America analyst Ken Hoexter upgraded Scorpio Tankers Inc. (NYSE:STNG) stock to Buy from Neutral and raised the price target to $23 from $15.50, noting that rising rate outlook amid tightening product tanker capacity was one of the main reasons behind the upgrade.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Hosking Partners is a leading shareholder in Scorpio Tankers Inc. (NYSE:STNG) with 710,789 shares worth more than $9 million.
At the end of the fourth quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $34 million in Scorpio Tankers Inc. (NYSE:STNG), compared to 18 in the previous quarter worth $56 million.
4. DHT Holdings, Inc. (NYSE:DHT)
Number of Hedge Fund Holders: 16
Forward Dividend Yield: 1.34%
DHT Holdings, Inc. (NYSE:DHT) owns and operates crude oil tankers. The company has solid finances, evidenced by a handsome earnings beat in the fourth quarter of 2021 and 15 years of consistent dividend payouts for shareholders. On February 7, it declared a quarterly dividend of $0.02 per share, in line with previous. The Russian invasion of Ukraine and high energy prices due to post-pandemic rise in demand as well as supply chain problems have all served to boost the shares of the firm in the past few weeks.
In early January, DHT Holdings, Inc. (NYSE:DHT) stock climbed more than 4% after the company announced that it had purchased 561,111 of its own shares at an average price of $5.2848 per share. The chunk represents nearly 0.3% of the outstanding stock.
At the end of the fourth quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $84 million in DHT Holdings, Inc. (NYSE:DHT), up from 15 in the previous quarter worth $110 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in DHT Holdings, Inc. (NYSE:DHT) with 4.2 million shares worth more than $22 million.
3. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 19
Forward Dividend Yield: 1.29%
Matson, Inc. (NYSE:MATX) provides transportation and logistics services. The company has a stellar dividend history with 32 years of consecutive payouts and 9 years of consistent growth in the dividend space. In late January, the firm declared a quarterly dividend of $0.30 per share, in line with previous. In the fourth quarter of 2021, the firm also beat market estimates on earnings per share and revenue by $2.58 and $190 million. The company is one of the premier transport service providers in Hawaii, Alaska, and Guam.
On March 14, Stifel analyst Benjamin Nolan kept a Buy rating on Matson, Inc. (NYSE:MATX) stock and raised the price target to $131 from $98, underlining that “shifting equipment around should give the company a major boost in China and greater run rate volumes”.
At the end of the fourth quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $40 million in Matson, Inc. (NYSE:MATX), compared to 13 in the preceding quarter worth $20 million.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm AltraVue Capital is a leading shareholder in Matson, Inc. (NYSE:MATX) with 840,895 shares worth more than $21 million.
2. Genco Shipping & Trading Limited (NYSE:GNK)
Number of Hedge Fund Holders: 20
Forward Dividend Yield: 12.10%
Genco Shipping & Trading Limited (NYSE:GNK) engages in the ocean transportation of a variety of cargoes. The company is on part with the sector median with regards to dividend payouts. However, it recently hiked the dividend payment by a massive 350%. On March 8, the quarterly dividend payout was $0.67 per share, compared to $0.15 per share previously. In late February, the firm also announced quarterly earnings, beating market estimates on earnings per share and revenue by $0.05 and $49 million respectively.
Genco Shipping & Trading Limited (NYSE:GNK) has an impressive fleet of vehicles which consist of 44 dry bulk carriers. These include 17 Capesize, 15 Ultramax, and 12 Supramax with an aggregate capacity of approximately 4,636,000 deadweight tons.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Centerbridge Partners is a leading shareholder in Genco Shipping & Trading Limited (NYSE:GNK) with 4.5 million shares worth more than $73 million.
At the end of the fourth quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $144 million in Genco Shipping & Trading Limited (NYSE:GNK), compared to 17 in the preceding quarter worth $175 million.
1. Danaos Corporation (NYSE:DAC)
Number of Hedge Fund Holders: 21
Forward Dividend Yield: 3.07%
Danaos Corporation (NYSE:DAC) owns and operates containerships across the globe. The firm is based in Greece. On February 7, the firm declared a quarterly dividend of $0.75 per share, an increase of 50% from the previous payout of $0.50 per share. It also declared earnings for the fourth quarter of 2021 on the same date, reporting earnings per share of $6.10, beating estimates by $1.15. The revenue over the period was $215 million, up more than 79% compared to the revenue in the fourth quarter of 2020.
On February 9. Citi analyst Christian Wetherbee kept a Neutral rating on Danaos Corporation (NYSE:DAC) stock and raised the price target to $115 from $90, appreciating the earnings of the firm driven by strong charting activity.
At the end of the fourth quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $197 million in Danaos Corporation (NYSE:DAC), compared to 16 in the preceding quarter worth $159 million.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Impala Asset Management is a leading shareholder in Danaos Corporation (NYSE:DAC) with 974,041 shares worth more than $72 million.
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Disclosure. None. 10 Oil Tanker Stocks That Pay Dividends is originally published on Insider Monkey.
