My High Dividend Stocks Blog http://myhighdividendstocks.posterous.com Most recent posts at My High Dividend Stocks Blog posterous.com Thu, 03 Feb 2011 14:59:54 -0800 Safe Bulkers dividend payout ratio remains low depsite an expected decline in earnings. http://myhighdividendstocks.posterous.com/safe-bulkers-dividend-payout-ratio-remains-lo http://myhighdividendstocks.posterous.com/safe-bulkers-dividend-payout-ratio-remains-lo

Let’s assume that the nameless analysts below are correct in that, “On average, analysts predict that Safe Bulkers, Inc. will post $0.38 EPS next quarter. The company has a market cap of $569.8 million and a price-to-earnings ratio of 5.04.”  Is the Safe Bulkers dividend threatened?

Safe Bulkers has been paying a quarterly dividend of $0.15 per share for two years.  Safe Bulkers dividend payout ratio will equal 39.4% if they continue to payout $0.15 per quarter.  This does not immediately threaten Safe Bulkers dividend.  I would take over a year of earnings erosion to threaten SB’s dividend.

Make no mistake, there is a ton of dry bulk tonnage (pun intended) coming into the market.  Many dry bulk shippers ordered ship to be built during the central bank fueled boom times of 2006-2007.  The Baltic Dry Index was at record high levels.  Then the central bank fueled bust came in 2008-2009.  Suddenly there was no need for all the ships being built in the shipyards.  Many dry bulk companies cancelled or delay delivery.  The delayed deliveries are sliding down into the water when the BDI is at near record lows.  I read last night than the tonnage available in the world wide fleet is about to be nearly doubled. (http://seekingalpha.com/article/250232-dht-the-silver-lining-in-the-shipping-cloud )

However, the need for Capesize dry bulk ships goes up if the Suez Canal gets shut down by Egyptian turmoil.

Safe Bulkers, Inc. (SB) Downgraded by FBR Capital (FBCM) to “Market Perform”

February 1st, 2011 • View CommentsFiled Under • by ABMN Staff

Filed Under: Analysts DowngradesMarket News

Tweet

Equities research analysts at FBR Capital (NASDAQ: FBCM) downgraded shares of Safe Bulkers, Inc. (NYSE: SB) from an “outperform” rating to a “market perform” rating in a research note to investors on Monday. The analysts currently have a $9.00 price target on the stock.

Separately, analysts at Zacks Investment Research downgraded shares of Safe Bulkers, Inc. from a “neutral” rating to an “underperform” rating in a research note to investors on Wednesday January 26th.

Safe Bulkers, Inc. (Safe Bulkers) is an international provider of marine dry bulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along global shipping routes for some of the global consumers of marine dry bulk transportation services. As of January 31, 2010, the Company had a fleet of 13 dry bulk vessels, with an aggregate carrying capacity of 1,077,900 deadweight tons (dwt) and an average age of 3.6 years. The fleet consisted of four Panamax vessels, three Kamsarmax vessels and six Post-Panamax class vessels. The Company’s subsidiaries include Efragel Shipping Corporation, Marindou Shipping Corporation, Avstes Shipping Corporation, Kerasies Shipping Corporation, Marathassa Shipping Corporation, Pemer Shipping Ltd., Petra Shipping Ltd., Pelea Shipping Ltd., Staloudi Shipping Corporation, Marinouki Shipping Corporation, Soffive Shipping Corporation, Eniaprohi Shipping Corporation and Eniadefhi Shipping Corporation.

Shares of Safe Bulkers, Inc. (NYSE: SB) traded up 2.13% during mid-day trading on Tuesday, hitting $8.65. Safe Bulkers, Inc. has a 52 week low of $6.50 and a 52 week high of $9.00. The stock’s 50-day moving average is $8.63 and its 200-day moving average is $8.07. On average, analysts predict that Safe Bulkers, Inc. will post $0.38 EPS next quarter. The company has a market cap of $569.8 million and a price-to-earnings ratio of 5.04.

Original link to article: http://www.americanbankingnews.com/2011/02/01/safe-bulkers-inc-sb-downgraded-by-fbr-capital-fbcm-to-market-perform/#

Subscribe for free today at www.myhighdividendstocks.com/feed to discover high dividend stocks with earning power and strong balance sheets.

Be seeing you!

Permalink | Leave a comment  »

]]>
http://files.posterous.com/user_profile_pics/697493/v_for_vendetta_guy_fawkes_mask11.jpg http://posterous.com/users/4wuf4tt8LZzb Jason Brizic myhighdividendstocks Jason Brizic
Fri, 14 Jan 2011 11:30:28 -0800 Warning - AGNC dividend payout ratio might exceed 115% http://myhighdividendstocks.posterous.com/warning-agnc-dividend-payout-ratio-might-exce http://myhighdividendstocks.posterous.com/warning-agnc-dividend-payout-ratio-might-exce

Warning - AGNC dividend payout ratio might exceed 115% for 4Q2010.

AGNC’s last quarterly dividend was $1.40 per share.  They announced in December that they would pay a $1.40 dividend for 4Q2010.  They have paid $1.40 per share since 3Q2009.  However, AGNC disclosed on January 12th, 2011 that it expects to earn at least $1.20 in 4Q2010.  That isn’t enough to cover the dividend.  I wrote about this on December 17th, 2010.

http://bit.ly/how-much-longer

Their dividend payout ratio will rise above 100%.  That is a warning to high dividend stock investors that a cut to the dividend in coming in future quarters unless something changes that course.  A $1.40 divided by $1.20 equals a dividend payout ratio of 116%.  Yikes!  If the unnamed analysts are correct, then the payout ratio will be 108.5% for 4Q2010.  Factor this into your investment plans if you own AGNC.

Disclosure: I don’t own AGNC shares.

American Capital Agency Corp. Issues Q4 2010 EPS Guidance In Line With Analysts' Estimates
Wednesday, 12 Jan 2011 04:08pm EST 

American Capital Agency Corp. announced that for the fourth quarter of 2010, it expects earnings per share (EPS) to exceed $1.20, including an anticipated benefit from slower projected prepayment speeds. According to Reuters Estimates, analysts are expecting the Company to report EPS of $1.29 for the fourth quarter of 2010. 

http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=AGNC.O&timestamp=20110113225400

Be seeing you!

Permalink | Leave a comment  »

]]>
http://files.posterous.com/user_profile_pics/697493/v_for_vendetta_guy_fawkes_mask11.jpg http://posterous.com/users/4wuf4tt8LZzb Jason Brizic myhighdividendstocks Jason Brizic