My stock market interest is focused around companies that pay distributions. After watching the market for the last year and a half, I have come to the conclusion that the safest money is that which is paid out to me as dividends. The companies that have been able to maintain their distributions over the last year or so have rewarded their investors for believing in the companies. Those investors that bought these stocks when the prices were stupidly low (not a shipping company but AYR at $2.50 per share!) have done very well over the last 8 months.

I will be reviewing the dividend policies of 2 to 3 stocks every couple of days in alphabetical order. So here we go:

Capital Product Partners LP CPLP has been paying steadily increasing dividends, currently at 41¢ per share. At the IPO in 2007 the minimum distribution level was set at 37.5¢ per share. In January the board of directors declared a one-time distribution of $1.05 that was paid instead of the usual 41¢. Cash flow seems sufficient to maintain the distribution level.

DHT Maritime Inc. DHT appears to have a minimum distribution level of 25¢ per quarter. Payouts have been higher when profit sharing on their fleet of chartered tankers do well. Quarterly payouts have ranged from 25¢ to 53¢ over the last 4 years.

Euroseas Ltd. ESEA has a flexible dividend based on the board’s decision each quarter. From 2005 until 2008 the quarterly number had been between 20¢ and 30¢ per share. For the 1st two payouts of 2009 the rate has been at 10¢.

OK, there is the information on the first 3 out of 24. I see that Frontline is next on the alphabetical list, so the next post will be fun.

Here are the payors 6 through 10 on my list. The stocks are listed in this order: Company and stock symbol, dividend earned on $1000 invested on 1/1/2009 (divide by 5 to get an annualized percentage) and the share price change since the beginning of the year.

• Navios Maritime Holdings, $37.92, +75%
• International Shipholding Corp. $39.00, -9.4%
• Safe Bulkers, $45.00, +16.8%
• Tsakos Energy Navigation, $45.90, +22.8%
• Euroseas, Ltd. $46.60, +38%

Of this group, Navios and Safe Bulkers are bulk carriers, Tsakos Energy Nav is in the tanker business and International Shipholding and Euroseas are mixed fleet carriers. ISH is a domestic U.S. carrier with a diversity of shipping business and I think it has suffered from the U.S. economic slowdown. It also appears to be distribution somewhat more than current free cash flow.

Otherwise, these companies with distribution yields in the 4% to 8% range have rewarded their share holders pretty well in the 1st half of 2009.

Bulk and container ship owner Euroseas Ltd. ESEA released their first quarter earning last week and the report shows how tough things are in both sectors. Euroseas is a company that buys older (10 years +) and works to keep their operating costs as low as possible. They are also committed to paying a dividend and the stock is currently yielding 7.5%.

Throwing out all of the one time adds & subtractions, in the 1st quarter ESEA saw EBIDTA fall by 67% and net earnings by 80%. They are keeping their dry bulk vessels busy and profitable but really struggling in the container market.

The company has restricted and unrestricted cash in a greater amount than outstanding debt, a good thing. If Euroseas was just in the dry bulk business they would be interesting due to their low cost structure, but at this time the very weak container market continues to be a drag on the company’s revenues.