- The broader shipping industry is notoriously difficult and has frequently produced disappointing results for investors, especially those seeking an income.
- Whilst the LNG shipping industry faces the same hurdles of very volatile earnings and high capital intensity, Teekay LNG Partners has managed to consistently sustain or grow their distributions.
- Thankfully their leverage sits towards the bottom of the moderate territory and thus provides support to help their distributions.
- The one downside is their weak liquidity that faces a sizable wave of debt maturities and whilst this does not necessarily threaten their distributions, it remains something to monitor.
- Since they offer one of the best incomes you can get from this notoriously difficult industry, I believe that their high 8% distribution yield deserves a bullish rating.
For further details see:
Teekay LNG Partners: The Best Income You Can Get From This Notoriously Difficult Industry