Are Nordic American Tankers’ Dividends Falling?
3Q17 cash flow
The operating cash flow represents the cash flow from a company’s core operations. Nordic American Tankers’ (NAT) operating cash flow for the first nine months of 2017 was $37 million—compared to $124 million in the same period last year.
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Nordic American Tankers has a long history of paying dividends—81 consecutive quarters to date. For 3Q17, the company declared a cash dividend of $0.03 per share. The cash dividend is expected to be paid on December 5, 2017. The last dividend was $0.20 per share and $0.25 per share in 3Q16.
Nordic American Tankers has three newbuilds in the pipeline. The newbuilds will increase the company’s earning capacity, which should increase the company’s dividends. Since the tanker markets improved, investors can expect higher dividends. In its 3Q17 earnings, Nordic American Tankers stated that for the last 25 years, the average rate for Suezmax vessels has been $30,000 per day. The earnings will the basis for a yearly dividend of $2 per share.
Nordic American Tankers had a dividend yield of 12.4% as of November 8, 2017. The dividend yields for Nordic American Tankers’ peers are:
- DHT Holdings’ (DHT) dividend yield is 2%.
- Teekay Tankers’ (TNK) dividend yield is 8.2%.
- Tsakos Energy Navigation’s (TNP) dividend yield is 4.4%.
- Euronav’s (EURN) dividend yield is 3.3%.
- Navios Maritime Midstream Partners’ (NAP) dividend yield is 21.1%.
In the next part of the series, we’ll see how analysts reacted to Nordic American Tankers’ 3Q17 results.