Looking for a high yielding niche to hang your hat? You might consider the shuttle tanker industry, which performs a vital service to the oil industry - they can't monetize their oil unless it gets to port, and it's a whole lot cheaper to hire shuttle tankers to transport it, than it is to build underwater pipelines. This stock yields over 11%, and has good distribution coverage of 1.18x. It's a leader in a vital niche industry, with long term contracts, and over 99% utilization of its services. It hit its 2016 guidance targets in Q1, and its profitability is not affected by the price of oil.
We've written previous articles about KNOT Offshore Partners LP, (NYSE:KNOP), and this article will update the information in those articles. KNOP is a leading player in the shuttle tanker industry, which is tiny in comparison to other shipping industries - only 72 vessels, which is less than 2% of the vessel count in the conventional tanker industry. KNOP operates on a dropdown model with its sponsor, Knutsen NYK, which has sold an additional 7 vessels to KNOP, since KNOP IPO'd in April 2013 with 3 vessels. The fleet is all on long term contracts, which have an average of 5.3 years left on their contracts, in addition to extension options.
Source: Seeking Alpha
Related Articles:
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- Why We Are Dividend Growth Investors
Niche High Dividend Stock Yields 11%, Has Good Growth, Hitting Guidance Targets
Posted by D4L | Wednesday, July 20, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.