Navios Maritime Partners LP NMM has done something rare these days in the world of shipping stocks: They increased the distribution. The new rate is 40.5¢ per share compared to the previous 40¢ per quarter. In the 3rd quarter the company was able to raise capital and commit to the purchase of 2 additional vessels.
Navios Partners has benefited from being able to skim (in my opinion) some of the best contracts from the mothership Navios Maritime NM and the company came into existence in lat 2007 loaded with high revenue, insured contracts with high quality customers.
Operating cash flow has continued to increase and currently NMM has about 1.6 times coverage on all of their distribution obligations. The dividend seems secure for at least a couple of years. None of the current charters expire until the end of 2010. It will be interesting to see how the company works to renew contracts starting late next year. A scan through the charter rates reveals that none is at a rate that seems excessively high in the current rate environment.
I like NMM with their current distribution yield of 12.5% and high quality revenues. I do have a personal holding in this stock.
Navios Maritime Partners boosts dividend
Navios Maritime Partners L.P. – Investors.
Navios Maritime Partners LP NMM has done something rare these days in the world of shipping stocks: They increased the distribution. The new rate is 40.5¢ per share compared to the previous 40¢ per quarter. In the 3rd quarter the company was able to raise capital and commit to the purchase of 2 additional vessels.
Navios Partners has benefited from being able to skim (in my opinion) some of the best contracts from the mothership Navios Maritime NM and the company came into existence in lat 2007 loaded with high revenue, insured contracts with high quality customers.
Operating cash flow has continued to increase and currently NMM has about 1.6 times coverage on all of their distribution obligations. The dividend seems secure for at least a couple of years. None of the current charters expire until the end of 2010. It will be interesting to see how the company works to renew contracts starting late next year. A scan through the charter rates reveals that none is at a rate that seems excessively high in the current rate environment.
I like NMM with their current distribution yield of 12.5% and high quality revenues. I do have a personal holding in this stock.