Dividend Cuts

I have finally taken the time to update my shipping stock tracking portfolio in regards to the first quarter dividend distributions. Here are a couple of updates on individual stocks.

K-Sea Transportation KSP decided to conserve cash and is currently not paying a dividend. I have removed the stock from my dividend paying list.

Horizon Lines [[HRZ]] reduced the regular payout from 11¢ per share to 6¢.

It is probably not a coincidence that these two stocks are among the worst performing shipping stocks so far this year with K-Sea the worst, down over 20%.

Capital Product Partners LP CPLP paid a monster 41¢ dividend (4% of the stock value)  in February for the 4th quarter of 2009 but announced the target distribution rate of 90¢ per share (22.5¢ per quarter) for 2010. This still leave a better than 10% distribution rate if management can follow through.

There are currently 19 shipping stocks with an active dividend payment policy. The payouts declared or paid in the first 3 months of 2010 equate to an annual yield of just over 7%.

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