In this piece we will take a look at the nine shipping stocks that pay dividends. If you want to skip our primer on the shipping industry, the attractiveness of dividends, and want to take a look at the top five stocks in this piece, then head on over to 5 Best Shipping Stocks That Pay Dividends.
Recent trends in the global economy are nothing short of a historic crisis. After taking a beating from the worst pandemic in modern history, populations all over the world were on their early path to recovery when disaster struck in the form of the Russian invasion of Ukraine. This created a massive imbalance in global economies and saw prices for oil and commodities shoot up to record levels.
At the same time, global supply chains are finally picking up momentum after witnessing extreme pain due to post pandemic demand destruction. At the heart of all supply chains is the logistics industry, which is bifurcated into two categories. Out of these, inland transport covers the trucking and railroad segments, while shipping categorizes firms that haul cargo through the ocean.
The shipping industry is at the heart of the global supply chain as was evidenced by the recent Suez Canal crisis. The canal, which is a hub for ocean freight carriers, was blocked for a little less than a week in 2021. This then resulted in price increases for several products all over the globe.
Further boosting the importance of the shipping industry are several market research studies, all of which paint an optimistic future for the sector. For instance, a report by Valuates Report estimated that the industry was worth $61 billion in 2021, and that it should grow at a compounded annual growth rate (CAGR) of 5.1% until 2028. Trade agreements and capacity optimization are thought to be key drivers of the industry’s growth.
Another report by Fortune Business Insights analyzes the industry through the tonnage that it ships. The firm estimates that the industry’s shipping tonnage stood at 11 billion tons in 2021 and that it can grow at a CAGR of 2.5% over the next couple of years to stand at 13 billion tons in 2028. The research firm also believes that capacity optimization in the shipping industry, through large players partnering up with startups to use the latest technologies for optimizing trade routes and positioning data, can eliminate several pain points for the industry, such as the age old problem of shipping empty containers after a journey is completed.
The most optimistic research report part of the analysis today comes from Market Research Future. It estimates that the cargo shipping market was valued at $13 billion in 2021, and it will grow at a 5.2% CAGR to stand at $22 billion by 2030.
Additionally, another crucial marker to analyze the state of the shipping industry is also showing positive signs. This indicator is the Jefferies Shipping Index, which is a list of top shipping stocks made by the research firm Jefferies. As of April 2022, the Jefferies shipping index was up by 25% annually, indicating that the industry is seeing increased investor confidence. This is believed to be resulting from higher demand for tankers in the aftermath of the Russian invasion and strong performance by the tanker and dry bulk subsegments of the industry.
In this article our focus would be dividend-paying shipping stocks. Some stocks with the highest dividend yields in the industry are Genco Shipping & Trading Limited (NYSE:GNK), ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), and Golden Ocean Group Limited (NASDAQ:GOGL).
Photo by Shaah Shahidh on Unsplash
Our Methodology
In order to pick out the best shipping industry stocks, we took a broad look at the industry to determine which stocks pay dividends and are performing well. These were then studied through their analyst reports, earnings, large shareholders, and hedge fund sentiment courtesy of Insider Monkey’s 912 hedge fund survey for the first quarter of this year in order to better understand their operating environment and performance.
Best Shipping Stocks That Pay Dividends
9. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)
Number of Hedge Fund Holders: 6
Dividend Yield as of June 10, 2022: 7.71%
Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) is a dry bulk carrier and tanker shipping company. The company charters its vehicles and operates them to serve the needs of several different industries. These include coal, steel, forestry, ore, grain, and steel. Additionally, it also ships petroleum and associated products. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) is headquartered in Singapore and is more than a hundred years old after being founded in 1910.
By the end of its fiscal Q1, Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) reported that it had earned $110 million in revenue and $1.6 in non-GAAP EPS. Despite the fact the results saw its revenue grow annually, the company’s shares dropped in the stock market after the results came out. As part of the earnings, its chief executive officer explained that the quarter saw the company work with record charter rates and at the same time he announced a $0.47 dividend per share.
Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)’s dividend yield as of June 2022 was 7.71%. Insider Monkey analyzed 912 hedge fund portfolios for Q1 2022 and discovered that six had bought the company’s shares. Jefferies increased the company’s share price target to $26 from $24 in April 2022.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), Genco Shipping & Trading Limited (NYSE:GNK), and Golden Ocean Group Limited (NASDAQ:GOGL) are met by Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) in the list of shipping stocks that pay hefty dividends.
8. GasLog Partners LP (NYSE:GLOP)
Number of Hedge Fund Holders: 8
Dividend Yield as of June 10, 2022: 0.58%
GasLog Partners LP (NYSE:GLOP) is a European company that is headquartered in Piraeus, Greece. The company, as its name suggests, exclusively services the ocean shipping needs of the energy industry. It does so via chartering its liquefied natural gas (LNG) tanker ships on a multi-year basis to those that require its services.
Citi raised GasLog Partners LP (NYSE:GLOP)’s share price target to $5.5 from $5 in May 2022, and it justified the decision by outlining that higher demand for LNG can help the company with its balance sheet problems. Insider Monkey’s research of 912 hedge fund portfolios for this year’s March quarter revealed that eight had held a stake in the company.
GasLog Partners LP (NYSE:GLOP) raked in $85 million in revenue and $0.41 in non-GAAP EPS for its first fiscal quarter, in a strong set of results that beat Wall Street analyst estimates for both metrics. During the earnings event, its CEO cited confidence in the LNG market, stating that demand for the fuel has increased in the aftermath of the Russian invasion of Ukraine. As of June 10, 2022, GasLog Partners LP (NYSE:GLOP) had a 0.58% dividend yield.
GasLog Partners LP (NYSE:GLOP)’s largest investor is Jim Simons’s Renaissance Technologies which owns 695,411 shares that are worth $3.9 million.
7. Navios Maritime Partners L.P. (NYSE:NMM)
Number of Hedge Fund Holders: 9
Dividend Yield as of June 10, 2022: 0.69%
Navios Maritime Partners L.P. (NYSE:NMM) is a dry cargo vessel operator based in Monaco. The company also provides transportation services for petroleum products. Some of the products that its vessels can carry are iron ore, fertilizers, crude oil, containers, and refined petroleum. It has different sized ships in its portfolio, ranging from the Panamax carrier to the Ultra Handymax.
During its fiscal Q1, Navios Maritime Partners L.P. (NYSE:NMM) brought in $236 million in revenue and $2.78 in non-GAAP EPS. The results marked a strong recovery for the company as it saw its revenue grow by a whopping 263% annually during the quarter. Jefferies set a $55 price target for the company in March 2022, explaining that maritime rates are increasing.
Navios Maritime Partners L.P. (NYSE:NMM) had a dividend yield of 0.69% during June 2022, and nine of the 912 hedge fund portfolios part of Insider Monkey’s Q1 2022 research had bought a stake in the company.
Thomas E. Claugus’s GMT Capital is Navios Maritime Partners L.P. (NYSE:NMM)’s largest investor. It owns 594,654 shares that are worth $20 million.
6. Costamare Inc. (NYSE:CMRE)
Number of Hedge Fund Holders: 13
Dividend Yield as of June 10, 2022: 3.46%
Costamare Inc. (NYSE:CMRE) is another maritime shipping company that is based in Monaco. The firm focuses primarily on providing containerships to carriers. It has dozens of charter ships and dry bulk carriers in its portfolio and operates via chartering its vessels.
Costamare Inc. (NYSE:CMRE) raked in $268 million in revenue and $0.84 in non-GAAP EPS for its fiscal first quarter. This was a strong set of results that saw the company beat Wall Street analyst estimates for both metrics. During its earnings, the firm’s chief financial officer outlined that Costamare Inc. (NYSE:CMRE) had benefitted from a rebound in the container shipping industry. The firm had a dividend yield of 3.46% as of June 10, 2022.
Stifel lowered Costamare Inc. (NYSE:CMRE)’s share price target to $16 from $17 in May 2022, as it outlined that the firm’s decision to cancel shipbuilding contracts was disappointing due to their favorable rates, but that the cancellation will help with liquidity. By the end of this year’s March quarter, 13 of the 912 hedge funds polled by Insider Monkey had invested in the company.
Costamare Inc. (NYSE:CMRE)’s largest investor is Jim Simons’s Renaissance Technologies. It owns two million shares that are worth $37 million.
Along with Genco Shipping & Trading Limited (NYSE:GNK), ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), and Golden Ocean Group Limited (NASDAQ:GOGL), Costamare Inc. (NYSE:CMRE) is a top shipping stock with strong dividends.
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Disclosure: None. 10 Best Shipping Stocks That Pay Dividends is originally published on Insider Monkey.
