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Safe Bulkers: The Best Of Times For This 9% Preferred Stock Yielder

Published Wed, 11 Sep 2019 16:52:09 -0400 on Seeking Alpha

As the great author Charles Dickens might have commented, dry bulk shipping has become a tale of two sectors. Trade war fears have made it the worst of times for shipping sector sentiment. Yet soaring dry bulk shipping rates have made it the best of times for the actual fundamentals. Dry bulk shipping rates as measured by the Baltic Dry Index are near a 9 year high. Safe Bulkers Inc. (SB) has spent the past few years focused on strengthening its balance sheet and is now well positioned to profit from the good times ahead. Despite all the good news, Safe Bulkers Inc. 8% Cum Red Perp Pfd Shs Series D (SB.PD) continues to offer a hefty 9% yield and trade at a substantial discount to par. This article presents the positive case for SB.PD and also highlights some of the major risks.
What is SB.PD?
SB.PD is a par $25 cumulative preferred issue with an 8% coupon. Dividends are paid quarterly, and SB.PD now yields 9.0% at a recent price of $22.15. SB.PD is a perpetual issue, which means that the company is not required to call it. The company has the option to call SB.PD at par any time, but this is not a concern with the issue trading well below par. See prospectus for additional details. Average daily trading volume is typically around 15K shares. Use limit orders and patience when trading. There are 3.2 million shares of SB.PD outstanding which equals $85 million par value.
How does SB.PD differ from SB.PC?
Safe Bulkers Inc. 8% Cum Red Perp Pfd Shs Series C (NYSE: SB.PC)... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
STAR BULK CARRIERS 11.11   0.0 -0.07 0.00 0.00


Older articles featuring Star Bulk Carriers (SBLK):
Shipping Industry Preferred Stocks - High Yields, But Watch For Riptides
11.1% Yielding Portfolio With Good Coverage And Decent Growth Prospects
Profitable Despite The Trade Wars: A 10.4% Yield From Safe Bulkers Preferred
Star Bulk Exchange-Traded Notes Due 2019: Up 50%, The Trade Is Over - Do You Stick Around For The 8% Yield?
The Top 10 Reasons To Consider A 9.9% Yield From This Short Maturity Baby Bond
The Top 10 Reasons To Speculate On This 13.3% Yielder
Generating 6% Yield In A 0% World - Building Exchange Traded Debt Ladders
Exchange Traded Debt: Income For The Yield-Starved - Part II, The Post-Brexit Edition
Brexit: No High-Yield Panic Yet
Exchange Traded Debt - Strong Income For Yield-Starved Investors Or Looming Overreach?