2024-03-13 16:47:48 ET
Summary
- Recent weeks witnessed a rebase of the company’s equity currency to an 11% - 12% dividend yield on the back of shifting LNG market fundamentals.
- The company’s strong liquidity position and FCFE generation are key to the $0.75 per share dividend distribution despite challenges in the LNG spot market.
- Investors should tread with caution since any prolonged price weakness may prompt management to adjust the distribution strategy to a more sustainable yield.
Key Takeaway
In my previous equity research note on Flex LNG ( FLNG ) from February 2023, I recommended the company with a Hold as a robust investment choice within the shipping sector, particularly for investors seeking a stable dividend income stream. Since that assessment, Flex LNG has distributed approximately $170 million or $3.875 per share, consistent with my initial expectations....
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For further details see:
FLEX LNG Q4: Bankable Dividend In Turbulent Waters