2024-01-27 09:00:00 ET
Summary
- The GNK stock has been temporarily downgraded to a Hold now, with the growing optimism embedded in its stock valuations/ prices likely offering minimal returns ahead.
- With expenses rising and contracted TCE rates falling, it is understandable why the dry bulker's bottom line generation has been negatively affected.
- Combined with the management's back-loaded FQ4'23 reserve guidance of $19.5M, anyone hoping for a massive payout in the upcoming quarter must temper their expectations indeed.
- This is on top of GNK's lower forward yield of 3.4%, compared to its 4Y average yields of 8.37%, based on the latest quarterly payout of $0.15 per share.
- Interested investors may want to proceed with caution, since it remains to be seen if the stock offers a viable dividend investment thesis here.
We previously covered Genco Shipping & Trading Limited (GNK) in October 2023, discussing its excellent dividend prospects then, thanks to the highly competent management team, healthier balance sheet, and reduced operating expenses....
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For further details see:
Genco Shipping: FQ4'23 Dividends May Disappoint - You May Have Missed The Boat