Image Source: Pexels

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

The shipping stock sector [meaning companies that use ships for shipping, not FedEx (FDX) or UPS (UPS) type shipping] is one which is noted for its high yields. There are over a dozen that have yields of 5% or more, with one, Frontline Ltd. (FRO), forward yielding in excess of 13%. This Bermuda based company owns and operates oil tankers for transporting crude oil, coal, and iron ore. 

Although the company has usually been paying dividends on a regular basis [usually March, June, September, and December) along with special dividends, the amount of the dividend has fluctuated dramatically, making it very difficult to determine what the yield really is. They stopped paying dividends during the COVID year of 2021 but started up again in 2022.

Nordic American Tanker Shipping Ltd. (NAT) has paid quarterly dividends since 2001, but the dividend payments constantly change. It has a forward yield of 5.57%.

Remember, that just because a stock is paying a fairly consistent high yield, doesn’t mean that they will continue to do so and doesn’t mean that they won’t eliminate their dividend altogether. The price of the stock can drop far more than the dividends earned. In addition, many of these stocks have wide bid and asked spreads and low daily volumes. Do your research and assume the worst case before setting sail on shipping stocks for their high yields. 

The following is a list of shipping stocks with high forward yields.

Frontline Ltd. (FRO) 13%
Nordic American Tanker Shipping Ltd. (NAT) 5.57%
DHT Holdings (DHT) 11%
Diana Shipping (DSX) 20%
SFL Corp. (SFL) 8.8%
Star Bulk Carriers Corp. (SBLK) 7.5%

More By This Author: