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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
So, stocks are the place to go. But which stocks? While the market is clearly the place to go for strong returns, investors have different p...
-
Strange but true: seniors fear death less than running out of money in retirement. So what's a retiree to do? You could cut your expense...
-
If you're anticipating a long retirement, you'll want to remain invested in stocks to give your money a chance of outpacing inflatio...
-
When writing this article, I was looking for an ideal list of dividend-paying stocks that consistently raise their dividends each year. In a...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
If I could teach investors one thing, it would be how to identify and value “Forever Assets.” These businesses constitute the single best wa...
-
Exxon Mobil Corporation (NYSE:XOM) stock is trading at the same level as it was during the beginning of 2019. Even with company-specific pos...
-
As a new decade approaches, it's a good time to think about putting a few stocks in your portfolio that can stand the test of time, pote...
-
One of the Best Dividend Stocks of the Past Decade. If you ask most people to name the best dividend stocks, they’ll rattle off a similar li...
-
Dividends are profit sharing payments sent out to stockholders. Companies have a variety of reasons for paying them, ranging from simply swe...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.