A 12.3% Yielder Taking on Water

Demand is up, but supply chains are broken...‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

SPONSORED He Bought $380 Million Worth of a $2 Crypto! One of the earliest Bitcoin investors, who runs a billion-dollar crypto fund... just SOLD most of his Bitcoin and put $380 million into a $2 crypto. Shocking Story Here. SAFETY NET It's Been Rough Sailing for This 12.3% Yielder Marc Lichtenfeld, Chief Income Strategist, The Oxford Club I have heard from numerous business owners that it used to cost them, on average, around $2,000 to ship a large container of goods on a cargo ship. Today, that number is 10 times higher. The combination of surges in demand, broken supply chains and labor shortages has resulted in skyrocketing prices for global shipping companies. This is great news for their shareholders - especially the ones who like dividends. For example, take small cap Star Bulk Carriers Corp. (Nasdaq: SBLK), which operates out of Athens, Greece. It paid a $0.70 per share quarterly dividend last month, which comes out to a sky-high 12.3% yield on an annual basis. But can the company continue to deliver such a high yield the way its 128 vessels deliver goods around the world? Last year, Star Bulk Carriers generated $98.5 million in free cash flow but paid out only $4.8 million in dividends. As cash flow increases this year to an expected $586.6 million, dividends paid is forecast to come out to $325.1 million. But before the ongoing surge in prices, Star Bulk Carriers did not generate free cash flow for several years. Based on free cash flow and dividend payments for last year and those expected for this year, Star Bulk Carriers can easily afford its dividend. However, its dividend payment history is abysmal. SPONSORED Palm Beach Millionaire Reveals His Biggest Dividend Secrets He's Doing It Completely FREE OF CHARGE Right Here. It paid a nickel per share quarterly from 2009 through 2011, then slashed the dividend to $0.015 in 2012. It omitted its dividend in late 2012 and didn't pay one for seven years. In late 2019, it began paying a dividend but stopped after two quarters when the pandemic struck. Then in May, as cash flow was surging, Star Bulk Carriers returned cash to shareholders in the form of a big dividend (to its credit). The May dividend was $0.30 per share, and the company upped it to $0.70 in September. On the company's second quarter conference call, management didn't deny some analysts' assumptions that the next dividend will be more than $1 per share. So, on the one hand, when times are good, management shares the wealth with investors and pays a big dividend. But times aren't always good in this industry. There's a lot of feast and famine. And when Star Bulk Carriers is not flush with cash, it (appropriately) doesn't pay shareholders a dividend. The question is this: How long will the company stay strongly cash flow positive? Over the past 15 years, Star Bulk Carriers has been free cash flow positive for six of them. Can it sustain strong enough positive cash flows to continue paying such a big dividend? If history is any indication, the answer is likely no. Dividend Safety Rating: D If you have a stock whose dividend safety you'd like me to analyze, leave the ticker in the comments section. You can always check to see whether we've written about your favorite stock recently. Just click on the magnifying glass on the upper right corner of the Wealthy Retirement homepage and type in the company name. Good investing, Marc Leave a Comment TYPE A COMPANY'S NAME BELOW   MORE FROM WEALTHY RETIREMENT The Best Catalyst-Driven Investments Are the Safest Ones The Biotech Stock Numbers You Need to Know Don't Miss This Travel Sector Comeback Facebook Twitter Email Share Push Alert SPONSORED Do You Own ANY 5G Stocks? CNN calls 5G "the lifeblood of the new economy." If you don't invest now, you'll regret it later. Click here for details on the top 5G stock... You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. Privacy Policy | Whitelist Wealthy Retirement | Unsubscribe © 2021 The Oxford Club, LLC All Rights Reserved The Oxford Club | 105 West Monument Street | Baltimore, MD 21201 North America: 877.808.9795 | International: 443.353.4621 Oxfordclub.com The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201.