Tanker and shipping stocks might not be the first thing that comes to investors' minds when they think of “high yield." However, shipping companies can sometimes deliver very significant dividends when times are good. Times are, in fact, good for several names in this space, leading to significant dividend increases. Some of these dividend boosts were huge, coming in as high as 50%.
It is important to note that companies in this industry often change their dividends on a quarterly basis. Thus, payouts can fall as quickly as they rise, and investors should not count on consistently high yields. Nonetheless, the latest dividend updates show why shipping stocks can become powerful, if unpredictable, income plays during strong market cycles.
