- After more than quadrupling over the past twelve months, industry leader Star Bulk Carriers' shares sold off after the company reported Q1/2020 earnings and provided preliminary Q2 TCE expectations.
- Company amended its dividend policy to allow for a Q1 dividend of $0.30 per share.
- Preliminary Q2 TCE guidance of $21,168 is up almost 37% sequentially and bodes well for a sizeable dividend increase next quarter.
- At current charter rates, I would estimate Star Bulk Carriers' aggregate dividend payments for FY2021 to be in range of $1.50 to $2.00 which calculates to a dividend yield of between 7% and 9.5% p.a.
- Investors looking for exposure to the dry bulk shipping sector should consider using Thursday's setback to initiate a position in industry leader Star Bulk Carriers.
For further details see:
Star Bulk Carriers - Buy The Dip