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|
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