frontline
Key Points Crude oil tanker firm Frontline declared a $0.70 dividend following its earnings report on May 31, cut from $0.77.Dividends in the tanker industry are far more volatile than ordinary industries.Playing the dividend game in the tanker industry is tricky and requires betting on next quarter’s cash flow.5 stocks we like better than FrontlineThe Cyprus-based tanker firm Frontline (NYSE:FRO), on May 31, posted stellar earnings of $0.90 per share and declared a $0.70 dividend. Given the company’s stock price of $13.70, this makes for a mouth-watering annualized yield of over 20%. But the ...
ValueWalk
Key Points Oil markets have seen wide trading ranges between 2020-2022, these ranges are the lifeblood for the oil tanker industry. As higher and lower oil prices directly affect the demand for trade and shipment of the commodity, average daily rates for VLCCs are directly affected.Noticing a negative correlation between daily rates and oil prices, a view of a coming global recession may stimulate these rates as oil prices retreat. If this thesis proves correct, Frontline’s management can benefit from implying higher free cash flow generation via 7% dividend yields currently.NAV per share coin...
ValueWalk
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