We don't cover them (beyond my pay grade) but I know a lot of you invest in the shipping companies, many of which have high dividend yield. One of our members works for Stifel and he sent me a report this morning on the sector.
A lot of oil and refined products are transported around the globe by large tankers. Here is what Stifel had to say.
Crude Tanker Outlook Remains Challenging… Global oil demand growth is
currently less than 1% per year as growth from developing economies is nearly
being overwhelmed by developed market contraction. Also, the rise of U.S. oil
production is hampering crude tanker imports into the U.S. and will likely only
dampen crude tanker demand further.
Product Tanker Market Set to Rally… We believe the product tanker market is
positioned for a multi-year bull market as new export-oriented refineries are being
built near the sources of oil production such as Saudi Arabia. Also, the U.S.
prohibition on crude exports is causing domestic refineries to focus on refined
product exports, which should continue to strengthen demand.
The rate STNG and TNP as Buys.
Tankers for High Yield
Tankers for High Yield
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group