This 11.5% Dividend Yielder Is Safe Despite Operating In Volatile Drybulk Shipping Industry

Navios Maritime (NMM) is an international owner and operator of drybulk carriers, formed by Navios Maritime Holdings Inc (NM). NMM reported its earnings last Tuesday. The company topped both the earnings and revenue estimates. This was a surprise, given that dry bulkers have been facing tough times since 2009, when most of them could not predict the future demand and ordered much more vessels than actually required. This led to overcapacity, which in turn brought down the freight rates to ridiculously low levels. NMM offers a dividend yield of 11.5%.

The company has been consistently paying dividends for the last four years. The dividends have been on a rise all throughout the four years. Recently, the company raised the quarterly dividend, from 44 cents per share to 44.25 cents per share. Though the rise is small, investors still appreciate the company's ability to maintain a double-digit dividend yield in such a tough macroeconomic environment. The current dividend yield is 11.5%. Find here rest of the article.