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Intelligent Speculator
Intelligent Speculator

International Dividend Stocks – Maritime Transport, Risk Or Opportunity?

October 17, 2012 | About:

Every month, I start looking and researching dividend stocks of international companies. Why? Because they add diversification which I personally always look at as being:

“higher expected returns for the same level of risk”

I always like to consider such stocks when I update the ultimate sustainable dividend portfolio in an attempt to reach my long term passive income objectives. Last month, I had been looking in detail at 6 high quality foreign stocks. This month, I was looking for something more specific. Knowing that various parts of Europe are in big trouble, I was looking for possible opportunities that could be created by such chaos. Think about it for a few minutes, which country has been in the biggest trouble in the past few months? Greece comes to mind. There is no doubt that Greek companies are operating in extreme circumstances and many companies will likely go bankrupt. That being said, others will survive, especially once the situation has less uncertainty.

So today, I started looking at sectors where Greek companies have decent market share. More specifically, my criteria was:

-US traded stocks (excluding pink/otc stocks)

-Foreign based companies

-Paying over 5% dividend yield

I ended up running into the maritime transport sector which seems to have many of the biggest US listed companies headquartered in Greece.. just take a look at this:

TickerNamePriceDividend YieldPayout RatioCountryP/E Ratio
DCIXDiana Containerships Inc5.621.430GREECE15.13513488
TEUBox Ships Inc5.3219.550GREECE5.018868086
DHTDHT Holdings Inc5.6616.96N/AJERSEYN/A
NATNordic American Tankers Ltd9.0213.3N/ANORWAYN/A
TNPTsakos Energy Navigation Ltd4.7512.63N/AGREECEN/A
NMMNavios Maritime Partners LP14.9411.85146.17GREECE11.58139502
CPLPCapital Product Partners LP8.1411.4350.32GREECE5.390728704
SBLKStar Bulk Carriers Corp8.5310.55N/AGREECEN/A
SBSafe Bulkers Inc5.7610.446.56GREECE4.840336327
SFLShip Finance International Ltd15.1510.318.1BERMUDA8.757225213
ESEAEuroseas Ltd1.166.96751.32GREECEN/A
CMRECostamare Inc13.67.9170.22GREECE7.640449653
NNANavios Maritime Acq Corp2.896.92N/AGREECEN/A
NMNavios Maritime Holdings Inc3.66.6564.07GREECE8.780487572
SSWSeaspan Corp16.236.17N/AHONG KONG6.218390629
Clearly, several of these companies have been doing very poorly but in terms of speculation and trying to find survivors in an industry where better times are ahead, there is potential. The survivors will clearly face less competition going forward.

Obviously, much more analysis is required here but the high dividend yields certainly warrant a better look, especially for someone looking into building a more aggressive dividend portfolio.

Rating: 1.8/5 (6 votes)


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GuruFocus has detected 3 Warning Signs with Diana Containerships Inc $DCIX.
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