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Tsakos Energy Navigation Limited: An Unfairly Overlooked Dividend Paying Gem

Published Mon, 15 Apr 2019 10:25:11 -0400 on Seeking Alpha

Since its initial public offering in 2002, TEN Ltd. (also known as Tsakos Energy Navigation (TNP)) has achieved a well-deserved reputation as one of the best managed diversified tanker companies in the energy shipping industry.
Ten Ltd. has a consistent track record of generating cash for investors, which it regularly pays out through variable quarterly dividends. In addition, the company is conservatively run and has a moderate debt load. Management is top class, maintains fleet utilization levels high, invests opportunistically, and does not add tonnage on a speculative basis.
Share performance remains in the doldrums. Ten Ltd.'s initial public offering price was $7.50 per share. The stock closed at $3.44 on April 14, 2019, a 54.1% drop. At current prices, the company's price to book ratio is a measly 0.20.
Since inception as a public company, Ten Ltd. has, however, distributed to its common shareholders an aggregate of $10.81 in the form of 42 consecutive quarterly dividends. Most recently, the company announced a dividend of $0.05 per share payable in May 2019, a dividend yield of 6.37% based on current market prices for the shares. Since inception, the company's common shares have had an average dividend yield of 5.25%.
These shares present a good investment opportunity for investors who expect an eventual upturn in tanker rates, perhaps as early as year-end 2019. For many months, tanker rates have been mediocre, but there was a spike in the last quarter of 2018... Read more