SBLK - Star Bulk: Rich Dividend Yields As Market Volatility Remains
2024-04-25 16:00:00 ET
Summary
- SBLK remains a viable dividend investment thesis, with the higher TCE rates likely to boost its adj EBITDA generation and eventually, its quarterly dividend payouts through Q3'24.
- With the SBLK-EGLE merger approved and completed by April 09, 2024, the combined company also stands to gain as the largest US listed dry bulk shipping company.
- With a relatively reasonable estimated net-debt-to-EBITDA ratio of 1.98x (post forma), compared to the Marine Shipping average ratio of 1.83x, the all stock merger has been prudent indeed.
- SBLK is also expected to offer a rich forward dividend yield of 7.82%, higher than the US Treasury's yields, with the Fed likely to pivot by H2'24.
- With the market pullback still ongoing, readers may want to time their entry points, preferably after March 28, 2024 due to the potential selling pressure from SBLK's upcoming dividend payout.
We previously covered Star Bulk Carriers ( SBLK ) in December 2023, discussing its excellent intermediate-term prospects through the sustained fleet renewal, moderating net debt situation, and the promising dry bulk outlook through 2024....
Star Bulk: Rich Dividend Yields As Market Volatility Remains