Nordic American Tanker Dividend Stock Analysis
Nordic American Tanker Shipping, Ltd. owns and operates crude oil tankers. The company operates its vessels in the spot market, on time charters, or on bareboat charters. As of December 31, 2007, it owned 12 double hull Suezmax tankers averaging approximately 155,000 deadweight tons each. The company was founded in 1995 and is headquartered in Hamilton, Bermuda.
Nordic American Tanker is not a
dividend achiever but a component of the NYSE Composite and Zacks Yield Hog index. From the end of 1999 up until September 2008 this dividend stock has delivered an annual average total return of 29.10 % to its shareholders. The stock gained 19 % value so far in 2008.
At the same time company has managed to deliver a 6.40% average annual increase in its EPS since 1998.
The average cash breakeven for the trading fleet of 12 vessels is about $9,000 per day per vessel. The company has stated in their 2Q earnings and dividends announcement that when the freight market is above that level, the company will pay a dividend. The good news is that the average daily spot rate for the type of ships NAT holds has not fallen below $20,000 since 2000.
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