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My High Dividend Stocks
This is my high dividend stocks site where I help site members find high dividend stocks with earning power and strong balance sheets.

More Motley Fools are taking notice of high dividend stock Safe Bulkers (SB)

The Motley Fools are taking notice of my current favorite high dividend stock – Safe Bulkers (SB).  I agree with the positive reasons for being long this stock.

Disclosure: I don’t own Safe Bulkers (SB)  right now, but I want to.   I’m working on freeing up some funds to purchase this high dividend stock while it is still on sale at a low price.

Click on this link to see all the articles I’ve written on Safe Bulkers:  http://www.myhighdividendstocks.com/category/high-dividend-stocks/sb

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4-Star Stocks Poised to Pop: Safe Bulkers

By Brian D. Pacampara | More Articles
May 31, 2011 | Comments (0)

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, dry bulk shipper Safe Bulkers (NYSE: SB  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Safe Bulkers' business and see what CAPS investors are saying about the stock right now.

Safe Bulkers facts

Headquarters (Founded)

Athens, Greece (2007)

Market Cap

$521.7 million

Industry

Shipping

Trailing-12-Month Revenue

$165 million

Management

Chairman/CEO Polys Hajioannou

CFO Konstantinos Adamopoulos

Return on Capital (Average, Past 2 Years)

13.3%

Cash/Debt

$48.2 million / $486.4 million

Dividend Yield

8.2%

Competitors

Eagle Bulk Shipping (Nasdaq: EGLE  )

DryShips (Nasdaq: DRYS  )

Navios Maritime Holdings (NYSE: NM  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 92% of the 228 members who have rated Safe Bulkers believe the stock will outperform the S&P 500 going forward. These bulls include dh1000 and All-Star TSIF, who is ranked in the top 0.1% of our community.

Earlier this year, dh1000 listed several of Safe Bulkers' positives: "Relatively new ships on contracts for varying periods of time (staggered terms) with solid customers; reasonable debt and good dividends."

Currently, Safe Bulkers even sports a cheapish P/E of 4.6. That represents a discount to rivals like Eagle Bulk (10.0), DryShips (6.1), and Navios Maritime (7.9).

CAPS All-Star TSIF elaborates on the bargain opportunity:

The excess shipping is creating bargains for those who can afford to buy new ones from cancelled orders left at distressed shipyards, but they have to come to market profitably. I think Safe Bulkers after it's drop the last two months has a decent chance of holding it's own, which is all you really need right now. If they can maintain thieir dividend, (which at today's depressed share price is almost 8%, they should be able to hold up handily against the S&P).

What do you think about Safe Bulkers, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Link to original article: http://www.fool.com/retirement/general/2011/05/31/4-star-stocks-poised-to-pop-safe-bulkers.aspx

Safe Bulkers (SB) 7.82% dividend yield remains safe and on sale at $7.80 per share

Safe Bulkers (SB) remains on sale at $7.80 per share.  The company pays a $0.15 quarterly dividend that is safe.  The dividend yield for this high dividend stock is 7.82%.  The company has a five year average earning power of $1.50 per share.  And its balance sheet is good, but it could be improved upon.  I think it will improve once a few of its new-build ships begin operating over the next year.

The fundamentals are solid and have not changed.  Follow this link to read many recent articles on Safe Bulkers fundamentals:

http://www.myhighdividendstocks.com/category/high-dividend-stocks/sb

The technicals look good for market timing: http://bit.ly/3rySBchart

·         The continuous commodity indicator (CCI) is in negative territory.  The CCI tends to bottom at stock bottoms.

·         The stock price is barely below the 50 week moving average.  I like buying when the 50 week is below the 200 week moving average, but Safe Bulkers hasn’t been around for 200 weeks yet. 

·         The stock price is also sliding down the lower Bollinger Band.  Stock price bottoms tend to happen when the stock price jumps off the bottom Bollinger Band. 

·         I use the moving average convergence divergence indicator as a confirming indicator.  The MACD is a momentum oscillator based on the difference between two exponential moving averages.  See http://bit.ly/ChartSchool for a through explanation on each of these technical analysis terms.

You have a good reason to be concerned if you are only going to make a onetime purchase of SB.  This stock will go down if the S&P 500 goes down in reaction to a global double dip recession.  Dry bulk shipping moves the commodities that are necessary in a booming global economy.  A renewal of the global economic bust will drop dry bulk shipping stocks even though SB has long term contracts in place to whether the economic storm.  That will make it an extreme bargain with a huge dividend yield like in 2008 when the stock went below $3.00 per share temporarily.

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Video - Boyden Recommends Safe Bulkers (SB), Diana Shipping, Navios

You know I liked Safe Bulkers (SB) above $8.00 per share.  I really like it lately because the market participants are knocking the price down for no apparent reason.  There is a sale going on for the high dividend stock Safe Bulkers.  SB closed today at $7.70.  This makes no sense.

Yes, the Baltic dry index is meandering lower due to tons of new capsize ships entering service.  But all of Safe Bulkers capsizes are on long term contracts.  Only two of their 16 ships are the capsizes.  And they only have two more on the way out of about 11 new ships.  Even their unfinished capsizes are on contract for much higher prices than the low numbers being talked about in the video.

The dividend is safe and yielding 7.8% and climbing as the stock price goes 1% lower today.  The company has five year average earning power of $1.50 per share (easily enough to cover the $0.15 quarterly dividend).  It also has a good balance sheet.  So, I don’t believe me.  Well watch this video to hear it from someone else who is an analyst for some Wall Street firm.

Boyden Recommends Safe Bulkers, Diana Shipping, Navios

May 17 (Bloomberg) -- Natasha Boyden, an analyst with Cantor Fitzgerald LP, talks about her investment strategy for shipping industry stocks and her recommendations of Safe Bulkers Inc., Diana Shipping Inc. and Navios Maritime Acquisition Corp. shares. Boyden speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg) (/Bloomberg)

Here is the video link in case the embedded video code doesn’t work: http://www.washingtonpost.com/business/boyden-recommends-safe-bulkers-diana-shipping-navios/2011/05/17/AF7Z925G_video.html#

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Safe Bulkers (SB) goes ex-dividend tomorrow yielding 7.2%

NEW YORK (TheStreet) -- The ex-dividend date for Safe Bulkers (NYSE:SB) is tomorrow, May 18, 2011. Owners of shares as of market close today will be eligible for a dividend of 15 cents per share. At a price of $8.09 as of 9:32 a.m. ET, the dividend yield is 7.2%.

The average volume for Safe Bulkers has been 251,600 shares per day over the past 30 days. Safe Bulkers has a market cap of $586.9 million and is part of the services sector and transportation industry. Shares are down 6.5% year to date as of the close of trading on Monday.

Safe Bulkers, Inc. provides marine drybulk transportation services worldwide. The company transports various bulk cargoes, such as coal, grain, and iron ore. The company has a P/E ratio of 4.8, below the average transportation industry P/E ratio of 5.2 and below the S&P 500 P/E ratio of 17.7.

Original link: http://www.thestreet.com/story/11121943/1/safe-bulkers-stock-to-go-ex-dividend-tomorrow-sb.html

Disclosure: I don’t own Safe Bulkers now, but I intend to in the future months.

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TIP OF THE WEEK - Why the dividend/earning yield ratio is better than the dividend payout ratio

Why the dividend/earning yield ratio is better than the dividend payout ratio

Jason Brizic

May 13, 2011

Rock solid high dividend stocks earn more than they payout in dividends year after year.  This ratio between earnings per share and dividends per share is commonly known as the dividend payout ratio.  A dividend payout ratio above 100% signals a possible dividend cut (especially the longer it stays above 100%).

The dividend payout ratio is nice but it only shows you the difference between the two numbers being compared.  There is another number that called the earnings yield that can be compared to the dividend yield.  Let’s compare three companies with some similar ratios.  Proctor & Gamble (dividend aristocrat) and Safe Bulkers have similar dividend payout ratios and div yield/earnings yield ratios, but much different dividend yields.  Safe Bulkers and WWE have high dividend yields, but very different ratios.

Proctor & Gamble (PG)

Safe Bulkers (SB)

World Wrestling Ent.(WWE)

Dividend/share

$2.10

$0.60

$1.44

Earnings/share

$4.32

$1.73

$0.72

Dividend Payout Ratio

48.6%

34.7%

200%

Dividend yield

3.0%

7.3%

13.9%

Earnings yield

5.7%

19.2%

4.8%

Div yld./Earning yld.

52.6%

38.0%

289%

It should be no surprise that WWE cut its dividend recently and now its dividend yield is in the 4-5% range.

You can use Morningstar.com to quickly find these yields.  Go to www.morningstar.com.  Type your stock ticker into the box at the top.  Then click on the Valuations tab.  Scroll down to the bottom of the page’s contents and you will see the dividend and earnings yields.  It looks like this:

Image002

I like to see double digit earnings yields with a slightly smaller dividend yield.  Safe Bulkers (SB) is a beautiful thing.  Click here to be taken right to the page:

http://financials.morningstar.com/valuation/price-ratio.html?t=SB

For more tips, go here:

http://www.myhighdividendstocks.com/category/tip-of-the-week

Large bank debt is frequently a sign of weakness. Safe Bulkers (SB) vs. AGNC.

Large bank debt due shortly is frequently a sign of weakness.  I’m comparing two of the stocks that I’ve been analyzing the most: Safe Bulkers (SB) and American Capital Agency Corp. (AGNC).  Both are high dividend stocks.  SB yields about 7.4% and AGNC yields a whopping 19%.  See how each of them deals with their short term debts.

Safe Bulkers (SB) looks like it is financially sound.  Safe Bulkers (SB) has $28.6 million in short term debt as of Q1 2011.  Short term debts were $8.2 million in 2006.  It has $53.2 million in total current liabilities.    Total current liabilities were $172 million in 2006.  Short term debt is on a slight uptrend, but total current liabilities are in a five year downtrend.  Safe Bulkers has an annual net income of about $109 million.  It can pay down the debts it owns with the money the business earns and continue to pay its high dividend (even in the beaten down dry-bulk shipping market; shipping rates have plummeted since 2008).  The same can’t be said of AGNC.

American Capital Agency Corp. (AGNC) is not financially sound because it is leveraged 7-9 times and like a bank it is borrowed short (through repurchase agreements due in 30-180 days) and lent long (agency securities).  AGNC has $21.9 billion in short term debt according to the company’s latest quarterly report.  The company’s total current liabilities is virtually the same as its short term debts.  AGNC has an annual net income of about $288 million.

You can see the huge difference between AGNC’s short term debt and net income due to their leverage.  I expect the company’s net income to decrease in the next year or so due to rising short term interest rates.

The point is that AGNC does not payback its short term debts with the money it earns.  Its dividend payment is also in jeopardy.  It issues more stock to raise capital and it rolls over its debts.  The music stops when the financial institutions refuse to rollover its short term debts (credit crisis) or they charge higher rates for short term borrowings (rising interest rates).

I will not invest in banks, mortgage REITs, and insurance companies for this reason.  They are too opaque and difficult to understand their asset values.  The details of the business operations are also difficult to understand.  Don’t be charmed by their siren’s song of a whopping dividend yield or you may find a portion of your dividend portfolio smashed upon the rocks when the interest rate yield curve inverts.

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Large Bank Debt Frequently a Sign of Weakness. Financial difficulties are almost always heralded by the presence of bank loans or of other debt due in a short time. In other words, it is rare for a weak financial position to be created solely by ordinary trade accounts payable. This does not mean that bank debt is a bad sign in itself; the use of a reasonable amount of bank credit —particularly for seasonal needs—is not only legitimate but even desirable. But, whenever the statement shows Notes or Bills Payable, the analyst will subject the financial picture to a somewhat closer scrutiny than in cases where there is a “clean” balance sheet.

The postwar boom in 1919 was marked by an enormous expansion of industrial inventories carried at high prices and financed largely by bank loans. The 1920–1921 collapse of commodity prices made these industrial bank loans a major problem. But the depression of the 1930’s had different characteristics. Industrial borrowings in 1929 had been remarkably small, due first to the absence of commodity or inventory speculation and secondly to the huge sales of stock to provide additional working capital. (Naturally there were exceptions, such as, notably, Anaconda Copper Mining Company which owed $35,000,000 to banks at the end of 1929, increased to $70,500,000 three years later.) The large bank borrowings were shown more frequently by the railroads and public utilities. These were contracted to pay for property additions or to meet maturing debt or—in the case of some railways—to carry unearned fixed charges. The expectation in all these cases was that the bank loans would be refunded by permanent financing; but in many instances such refinancing proved impossible, and receivership resulted. The collapse of the Insull system of public-utility holding companies was precipitated in this way.

Dahlman Rose and I like Safe Bulkers (SB); Dividend Yield 7.69% safe.

It is good to see Dahlman Rose likes Safe Bulkers dividend record, earning power, and balance sheet as much as I do.  Read yesterday’s post to see while supporting evidence for the statement above.

You are getting a buying opportunity right now with Safe Bulkers down $0.31 (-3.83%) at $7.79 as I write this.  The dividend yield is 7.69% at this price.

I perform fundamental analysis first and then I use a few technical analysis techniques for timing entries and exits.  Here is the chart that visualizes this buying opportunity: http://stockcharts.com/h-sc/ui?s=SB&p=W&b=5&g=0&id=p73304174446

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http://www.benzinga.com/analyst-ratings/analyst-color/11/05/1055842/dahlman-rose-reiterates-its-buy-on-safe-bulkers-followin

Safe Bulkers (NYSE: SB) reported 1Q11 EPS of $0.41, just ahead of Dahlman Rose and consensus estimates of $0.38. Net voyage revenues of $42.3MM compared to its $40.8MM forecast and slightly lower than expected opex and G&A contributed to the beat. The company declared its regular $0.15 dividend, which represents a 7.4% yield at the current share price. Safe Bulkers continues to be one of the very few shipowners with the ability to pay out dividends because of its strong balance sheet.

Safe Bulkers has secured time charters for 75% of its remaining 2011 operating days, compared to just above 50% for the peer group, and has contracted 59% of its 2012 operating days and 52% of its 2013 operating days. Safe Bulkers currently has one Capesize vessel in its fleet, which it has fixed on a long term time charter at $31,000/day until September and at $26,000/day for the remainder of the charter.

Cash earnings per share was $0.50 per share in 1Q11 and 2011 CEPS is estimated at $1.93. Therefore, the $0.60 dividend is well-protected and the company's excess cash flow affords it flexibility as the dry bulk market remains pressured. Dahlman believes Safe Bulkers will continue to be very well-positioned in the coming years, despite a weak dry bulk market, and look for its shares to outperform. Dahlman Rose reiterates its Buy rating and $10 target.

SB closed Tuesday at $8.10

Read more: http://www.benzinga.com/analyst-ratings/analyst-color/11/05/1055842/dahlman-rose-reiterates-its-buy-on-safe-bulkers-followin#ixzz1LPDfdUet

Safe Bulkers (SB) reports Q12011 results and declares quarterly dividend.

Image001
Safe Bulkers remains my favorite high dividend stock after its Q12011 results today.  Here is why.

Dividend Record: No change.  Safe Bulkers (SB) will pay its usual $0.15 per share quarterly cash dividend payable on or about May 27th, 2011 to shareholders of record at the close of trading of the Company’s common stock on the New York Stock Exchange on May 20th, 2011.  SB’s payout ratio remains low at 36.5% ($0.15 dividend/$0.41 EPS).  The dividend remains safe like I’ve been saying since I started writing about Safe Bulkers.  SB is yielding 7.4% right now ($0.60 annual dividend/$8.10 market price).

Earning power:  Revenues were up for the third straight quarter.  Net income was down by 15%, but most of that was the absence of the proceeds from a ship sale back in January 2010.  Time charter equivalency rates were almost unchanged from a year ago, so earnings are stable.  I expect Safe Bulkers income to be almost identical to 2010 at about $1.60 per share @ 70.883 million shares.  The stock is currently trading at five times my estimated 2011 earnings.  I have recalculated its average earning power over the past five years + my estimate for this year.  If the above proves true, then SB has an average earning power of $1.90 per share.

Market price: $8.10

Shares: 70.883 M (5 M shares issued recently)

(earnings adjusted for changes in capitalization)

                        EPS                 Net inc.           Adj. EPS

2006                $1.78               $97.224 M       $1.37

2007                $3.84               $209.20 M       $2.95

2008                $2.19               $119.21 M       $1.68

2009                $3.03               $165.41 M       $2.33

2010                $1.73               $109.65 M       $1.55

2011(E)           $0.41x4           $27.3 M x4      $1.54(E)

                        $1.64(E)          $109.20 M (E)

Six year average earnings $1.90 per share.  12 times avg. earnings equals $22.80.  20 times avg. earnings equals $38.00.  This stock is a value because it is trading at 4.26 times its potential six year average earnings.

Balance sheet: Mixed improvements.  Debts decreased slightly, but current ratio and quick ratio worsened.

Book value per share: $3.69

Price to book value: 2.19

Current ratio: 1.00 (this has declined from 1.97 last quarter; above 2.0 is good.  I’m watching this closely)

Quick ratio: 0.90 (this also declined from 1.92 last quarter; above 1.0 is good.  I’m watching this closely)

DISCLOSURE: I don’t own Safe Bulkers yet, but I’m working on some changes to my retirement accounts so I can buy some before investors figure out the value of this high dividend stock.

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SOURCE: Safe Bulkers, Inc.

May 03, 2011 16:05 ET

Safe Bulkers, Inc. Reports First Quarter 2011 Results and Declares Quarterly Dividend

ATHENS, GREECE--(Marketwire - May 3, 2011) - Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the first quarter ended March 31, 2011. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the first quarter of 2011.

Summary of First Quarter 2011 Results

--  Net revenue for the first quarter of 2011 increased by 23% to $42.3

    million from $34.3 million during the same period in 2010.

--  Net income for the first quarter of 2011 decreased by 15% to $27.3

    million from $32.1 million, which includes $15.2 million gain on sale

    of a vessel, during the same period in 2010.

--  EBITDA(1)  for the first quarter of 2011 decreased by 7% to $34.4

    million from $37.1 million during the same period in 2010.

--  Earnings per share for the first quarter of 2011 of $0.41, calculated

    on a weighted average number of shares of 65,881,600, compared to $0.58

    in the first quarter 2010, calculated on a weighted average number of

    shares of 55,435,436.

--  The Company's Board of Directors declared a dividend of $0.15 per share

    for the first quarter of 2011.

Link to the full press release: http://mwne.ws/SB1Q2011Results

A summary on Safe Bulkers ahead of earnings. High dividend + value.

Image001

Reuters is reporting that unnamed securities analysts think Safe Bulkers (SB) will earn between $0.32 and $0.43 per share in 1Q2011.  Safe Bulkers will report 1Q2011 earnings after the market closes on May 3rd, 2011.  Safe Bulkers $0.15 quarterly dividend is safe.

Dividend payout ratio - Let’s assume for a moment that the low estimate of $0.32 is accurate.  Their dividend payout ratio would be 47% (dividend per share/earnings per share or $0.15/$0.32).  If the best case proved to be true, then the dividend payout ratio would drop to 35%.  Either way the dividend is safe.

Dividend yield – Safe Bulkers is a high dividend stock yielding 7.41% ($0.60/$8.10).  It has paid $0.15 per quarter for the past nine quarters.

Earning power – The company has a five year average earning power of $1.50 and only trades at 5.4 times the 5 yr. average earnings.  That is a rare value in this stock market.

Balance sheet – recovering and improving

Image002

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SOURCE: Safe Bulkers, Inc.

April 28, 2011 09:00 ET

Safe Bulkers, Inc. Sets Date for First Quarter 2011 Results, Dividend Announcement, Conference Call and Webcast

Earnings Release: Tuesday, May 3, 2011, After Market Closes; Conference Call and Webcast: Wednesday, May 4, 2011 at 09:00 A.M. EDT

ATHENS, GREECE--(Marketwire - Apr 28, 2011) - Safe Bulkers, Inc. (the Company) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that it will release its results for the quarter ended March 31, 2011 after the market closes in New York on Tuesday, May 3, 2011. The Company also expects to announce the declaration of a dividend for the first quarter 2011 at that time.

On Wednesday, May 4, 2011 at 9:00 A.M. EDT, the Company's management team will host a conference call to discuss the financial results.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

In case of any problem with the above numbers, please dial 1 (866) 223-0615 (US Toll Free Dial In), 0(800) 694-1503 (UK Toll Free Dial In) or +44 (0)1452 586-513 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until May 13th by dialling 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#

Slides and audio webcast:

There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.safebulkers.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About Safe Bulkers, Inc.

The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services. The Company's common stock is listed on the NYSE, where it trades under the symbol "SB." The Company's current fleet consists of 16 drybulk vessels, all built post-2003, and the Company has contracted to acquire 11 additional drybulk newbuild vessels to be delivered at various times through 2014.

Chart: Safe Bulkers (SB) basic balance sheet 2006-2010.

I’ve been experimenting with visualizing balance sheets over time.  Here is a chart of Safe Bulkers (SB) basic balance sheet from 2006 – 2010:

Image003

It is nice to see the rebound in stockholder’s equity since 2008.

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