Once again I will continue working my way through my list of dividend paying shipping stocks. The purpose of these articles is to give you an idea of the amount and stability of the distributions of these companies. I am going through the list in alphabetical order:
OSG America L.P.OSP is a U.S. flagged transporter of petroleum products, primarily by barge. Overseas Shipholding Group holds the general management shares and 75.1% of the LP shares. OSP has been paying a steady 37.5¢ per share quarterly distribution since its inception in late 2007. Here is a quote from the last quarterly earnings concerning distribution coverage:
The Partnership generated $17.5 million of distributable cash flow for the first quarter of 2009, resulting in a distribution coverage ratio of 152%. Excluding the dividend of $5.3 million received from an affiliated company (Alaska Tanker Company), distribution coverage ratio for the period was 106%.
It appears the Alaska Tanker Company dividend was an one-time or annual event. The coverage ratio for all of 2008 was 119%. The current distribution rate looks a little iffy.
Overseas Shipholding GroupOSG covers the spectrum of tanker shipping: crude, product, gas and Jones Act (U.S. flagged). The $1.75 annual dividend seems adequately covered looking at the net earnings of $10.65 in 2008 and $4.53 in the 1st quarter of 2009. The companies website claims a 5-year dividend growth rate of 18%. OSG looks like a nice place for the conservative investor looking for a growing dividend stream.
Paragon Shipping Inc.PRGN currently charters their fleet of dry bulk carriers on 1 to 2 year charters. Through the 3rd quarter of 2008 Paragon had been paying 50¢ per share quarterly. The bulk shipping meltdown and financial problems caused many bulk shippers to suspend their distributions. Paragon elected to keep paying dividend a 5¢ per share, which they have for 2 quarters now. The company had very good results in the 1st quarter of 2009, so hopefully they will start increasing the payout soon.
Again, three shipping companies with 3 different dividend payout setups. More dividend paying companies soon.
Quality of Dividends, Part V
Once again I will continue working my way through my list of dividend paying shipping stocks. The purpose of these articles is to give you an idea of the amount and stability of the distributions of these companies. I am going through the list in alphabetical order:
OSG America L.P. OSP is a U.S. flagged transporter of petroleum products, primarily by barge. Overseas Shipholding Group holds the general management shares and 75.1% of the LP shares. OSP has been paying a steady 37.5¢ per share quarterly distribution since its inception in late 2007. Here is a quote from the last quarterly earnings concerning distribution coverage:
It appears the Alaska Tanker Company dividend was an one-time or annual event. The coverage ratio for all of 2008 was 119%. The current distribution rate looks a little iffy.
Overseas Shipholding Group OSG covers the spectrum of tanker shipping: crude, product, gas and Jones Act (U.S. flagged). The $1.75 annual dividend seems adequately covered looking at the net earnings of $10.65 in 2008 and $4.53 in the 1st quarter of 2009. The companies website claims a 5-year dividend growth rate of 18%. OSG looks like a nice place for the conservative investor looking for a growing dividend stream.
Paragon Shipping Inc. PRGN currently charters their fleet of dry bulk carriers on 1 to 2 year charters. Through the 3rd quarter of 2008 Paragon had been paying 50¢ per share quarterly. The bulk shipping meltdown and financial problems caused many bulk shippers to suspend their distributions. Paragon elected to keep paying dividend a 5¢ per share, which they have for 2 quarters now. The company had very good results in the 1st quarter of 2009, so hopefully they will start increasing the payout soon.
Again, three shipping companies with 3 different dividend payout setups. More dividend paying companies soon.