Despite record high January inflation data and ongoing tensions between the U.S. and Russia over Ukraine, the shipping industry’s prospects look bright thanks to soaring demand to address a global supply shortage. Robust import and export activity with the reopening of the economy has generated a level of investor optimism about the shipping space, as evidenced by the SonicShares Global Shipping ETF’s (BOAT) 15.4% returns over the past three months.
While fundamentally sound shipping stocks could be good bets now, we think it could be wise to pick the ones that offer high dividend yields. Because the stock market is expected to remain highly volatile on concerns over the Fed’s aggressive monetary policy tightening, investing in dividend stocks could help hedge one’s portfolio risks to a degree.
