I have not taken a lot of time to look at Seaspan Corps SSW year end results. Like many other companies in the shipping industry they took large write offs on losses from interest rate swaps, making a deeper look at how the company is doing a little tough. In my quick look through the press release and the website I did notice a couple of interesting items.
The press release did say distributable cash increased by 15% in the quarter over the same period in 2007.
This stock seems to be primarily a dividend play. They have increased significantly in each of the last 3 years. Bookkeeping creativity keeps the distributable cash and net income from having any noticeable relationship.
I found this page on the website which provided the very interesting fact that only around 20% of SSW’s distributions were to be considered actual dividends and the rest was return of capital. The return of capital part is not taxable until the total return of capital exceeds the shareholders basis in the stock. Pretty neat from a tax perspective.
In spite (or maybe because of) this stock’s 20% tax-advantaged yield, I would be a watcher from the sidelines until SSW announces their distribution for the 1st quarter of 2009. If there is an increase in the distribution I would become very interested in SSW as an income stock.
Seaspan Corporation: Notes on year end results
Seaspan Corporation – Seaspan Reports Financial Results for the Quarter and Year Ended December 31, 2008.
I have not taken a lot of time to look at Seaspan Corps SSW year end results. Like many other companies in the shipping industry they took large write offs on losses from interest rate swaps, making a deeper look at how the company is doing a little tough. In my quick look through the press release and the website I did notice a couple of interesting items.
In spite (or maybe because of) this stock’s 20% tax-advantaged yield, I would be a watcher from the sidelines until SSW announces their distribution for the 1st quarter of 2009. If there is an increase in the distribution I would become very interested in SSW as an income stock.