A portfolio of stocks I'm building, named Ivy, holds 52 dividend dogs. Ivy is the fourth portfolio I've built (at a one dividend dog per week pace) since 2014. Four portfolios = IV!
Today I'm reviewing the fourth of five industrials sector stocks this week striving to become the eighth of eight from that sector to join the Ivy folio.
That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.
Today I'm reviewing a small-cap shipping and ports operation named Ship Finance International Ltd. Their trading ticker symbol is SFL. I last reported on this company a year ago on August 24, 2018.
Ship Finance International Ltd is an international ship owning and chartering company.
The company is engaged in transporting crude oil and oil products, dry bulk and containerized cargos, and in offshore drilling and related activities.
As of February 26, 2019, it had a fleet of approximately 80 vessels, including tankers, bulkers, container vessels, and offshore assets.
The company was founded in 2003 and is based in Hamilton, Bermuda.
I use three key data points to gauge dividend-paying equities or funds like Ship Finance International Ltd:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
SFL Price
Ship Finance's price per share closed at $14.08 yesterday. A year ago its price was $14.65. In a year its price fell $0.57 or nearly 3.9%.
Assuming Ship Finance's stock trades in the range of $10.00 to $15.00 this year, Ship Finance's recent $14.08 price could rise by $0.42 and go to $14.50 by August 2020.
SFL Dividends
Ship Finance's latest declared quarterly dividend was $0.35 payable September 23rd.
That $0.35 Q payout combined with the previous ones generates an annual payout of $1.40 yielding 9.94% based on yesterday's $14.08 closing price.
Gains For SFL?
Adding the $1.40 annual estimated dividend to my $0.42 estimate of Ship Finance's price upside shows a $1.82 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little under $1,000.00 today at the $14.08 recent stock price, we'd buy 71 Ship Finance International Ltd shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.14 per share.
Subtract that $0.14 brokerage cost from the estimated $1.82 gross estimated gain leaves a net gain of $1.68 X 71 shares = ($119.28) or a 11.93% net gain on a $999.68 investment.
Therefore, Ship Finance International Ltd whose trading ticker symbol is SFL now shows a possible net gain of 11.93% including a 9.94% dividend yield.
Seven brokers track Ship Finance International Ltd stock:
Three say "buy" SFL.
One says SFL will "outperform" peers.
Three say "hold" SFL.
Their consensus score of 2.0 equates to "Outperform."
Our look at Ship Finance International Ltd shows it has made money, is making money, and could net a 11.93% gain including its 9.94% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Ship Finance International Ltd is worth your time and money.
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