My High Dividend Stocks Blog http://myhighdividendstocks.posterous.com Most recent posts at My High Dividend Stocks Blog posterous.com Mon, 14 Feb 2011 13:13:02 -0800 Safe Bulkers: Making a Move, Up 2.6% http://myhighdividendstocks.posterous.com/safe-bulkers-making-a-move-up-26 http://myhighdividendstocks.posterous.com/safe-bulkers-making-a-move-up-26

I’ve been blogging about Safe Bulkers Inc. for a few weeks.  They are a good high dividend stock with earning power and a strong balance.  The markets appear to be validating this fact today.

I would look to buy Safe Bulkers if the price falls back under $7.75 per share.

http://bit.ly/SB3yrChart

Disclosure: I don’t own Safe Bulkers (SB) right now.

Safe Bulkers: Making a Move, Up 2.6% (SB)

(via COMTEX News Network)--

Safe Bulkers (NYSE: SB) is one of today's notable stocks on the rise, up 2.6% to $9.56. The S&P is currently trading fractionally higher to 1,331 and the Dow Jones Industrial Average is trading fractionally lower to 12,264.

Safe Bulkers is in SmarTrend's Shipping & Marine Services industry and this industry is currently in an Uptrend according to our research. We are monitoring many other stocks on the move within this industry.

In the last five trading sessions, the 50-day MA has climbed 1.29% while the 200-day MA has risen 0.3%.

In the past 52 weeks, shares of Safe Bulkers have traded between a low of $6.50 and a high of $9.39 and are now at $9.56, which is 47% above that low price.

SmarTrend currently has shares of Safe Bulkers in an Uptrend and issued the Uptrend alert on July 30, 2010 at $7.71. The stock has risen 20.9% since the Uptrend alert was issued.

Write to Chip Brian at cbrian@tradethetrend.com

Link to the original article: http://bit.ly/SBwayup

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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
Wed, 09 Feb 2011 16:54:44 -0800 Safe Bulkers (SB) reported 4Q2010 earnings of $0.47 per share; dividend of $0.15 per share. http://myhighdividendstocks.posterous.com/safe-bulkers-sb-reported-4q2010-earnings-of-0 http://myhighdividendstocks.posterous.com/safe-bulkers-sb-reported-4q2010-earnings-of-0

Safe Bulkers Inc. (SB) reported 4Q2010 earnings of $0.47 per share and a continuation of the their $0.15 per share dividend.  Their dividend payout ratio is a very low 32%  for a high dividend stock.  SB closed at $8.95 today.  The stock currently yields 6.7%.  They are a dry bulk shipping company with 16 ships in their fleet.  I have written several articles on them because they are one of the best high dividend stocks in my opinion.

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

Here are some highlights from the earnings release (these are my words):

·         Their fleet is young.  The average age is only 3.80 years.  The assumption is that they are more fuel efficient and less maintenance costs than older vessels.

·         The dividend is stable and safe even at prevailing low Baltic Dry Index rates.

·         The vessel operating costs are up slightly, but do not threaten their large margins.

·         Earning power is stable.  Their fleet is 78% rented out for 2011, 59% in 2012, and 54% in 2013.  Most of their earnings are already known for the next few years.  Those earnings alone could easily cover their existing dividend rates.

·         They have a strong balance sheet.  Their debt is less than 50% of assets.  Their current ratio is good (current assets are over double of current liabilities

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Here is the Safe Bulkers press release with all the details:

SOURCE: Safe Bulkers, Inc.

 

Feb 09, 2011 16:05 ET

Safe Bulkers, Inc. Reports Fourth Quarter and Full Year 2010 Results and Declares Quarterly Dividend

ATHENS, GREECE--(Marketwire - February 9, 2011) - Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the fourth quarter and the year ended December 31, 2010. The Company also declared a quarterly dividend of $0.15 per share for the fourth quarter of 2010.

Summary of Fourth Quarter 2010 Results

-- Net revenue for the fourth quarter of 2010 increased by 13% to

   $41.3 million from $36.6 million during the same period in 2009.

-- Net income for the fourth quarter of 2010 increased by 34% to

   $31.1 million from $23.2 million during the same period in 2009.

-- EBITDA(1) for the fourth quarter of 2010 increased by 33% to

   $37.9 million from $28.4 million during the same period in 2009.

-- Earnings per share for the fourth quarter of 2010 of $0.47, calculated

   on a weighted average number of shares of 65,878,212, compared to $0.42

   in the fourth quarter 2009, calculated on a weighted average number of

   shares of 54,513,787.

-- Declaration of a dividend of $0.15 per share for the fourth quarter

   of 2010.

Summary of Twelve Months Ended December 31, 2010 Results

-- Net revenue for the twelve months ended December 31, 2010 decreased by

   5% to $157.0 million from $164.6 million during the same period in 2009.

-- Net income for the twelve months ended December 31, 2010 decreased by

   34% to $109.6 million from $165.4 million during the same period

   in 2009.

-- EBITDA for the twelve months ended December 31, 2010 decreased by 29% to

   $133.4 million from $187.6 million during the same period in 2009.

-- Earnings per share for the twelve months ended December 31, 2010 of

   $1.73, calculated on a weighted average number of shares of 63,300,466

   compared to $3.03 in the twelve months ended December 31, 2009,

   calculated on a weighted average number of shares of 54,510,587.

(1) EBITDA represents net income plus interest expense, tax, depreciation and amortization. See "EBITDA Reconciliation".

Fleet and Employment Profile

The Company's operational fleet as of December 31, 2010, was comprised of 16 drybulk vessels with an average age of 3.80 years.

As of December 31, 2010, the Company has contracted for eight additional drybulk newbuild vessels with deliveries scheduled at various times through 2013. The newbuilds consist of two Post-Panamax, three Kamsarmax, one Panamax and two Capesize vessels.

As of December 31, 2010, the remaining capital expenditure requirements for the delivery of the eight newbuilds, were $171.1 million for 2011, $70.4 million for 2012 and $22.2 for 2013. We anticipate satisfying these capital expenditure requirements from existing cash and time deposits, operating cash surplus and existing undrawn loan commitments.

On January 11, 2011, we contracted to acquire a Japanese-built, drybulk, Panamax-class newbuild at approximately $41.8 million, consisting of payments of $18.9 million and JPY 1.9 billion, with an expected delivery date in the first quarter of 2012.

As of January 31, 2011, the company has 1 existing and 8 newbuild vessels unencumbered and a $50 million long-term floating rate note facility against which additional loans can be drawn.

As of January 31, 2011, the contracted employment of the Company's fleet was 78% of fleet ownership days for the remaining days of 2011, 59% for 2012 and 54% for 2013, including vessels which are scheduled to be delivered to us in the future.

Dividend Declaration

The Company declared a cash dividend on its common stock of $0.15 per share payable on or about February 25, 2011 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on February 18, 2011.

The Company had 65,879,916 shares of common stock issued and outstanding as of today.

The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) our earnings, financial condition and cash requirements and availability, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in our existing and future debt instruments and (v) global financial conditions. We can give no assurance that dividends will be paid in the future.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "We are happy to announce today our unaudited financial results for the quarter and year ended December 31, 2010. Our revenues increased for the second consecutive quarter, supported by long term charters with our clients. Our Board has maintained a stable dividend policy by paying out a low percentage of free cash flows and declaring our eleventh consecutive quarterly dividend, of $0.15 per share, since our initial public offering in 2008. Our selective fleet expansion at attractive prices, funded to a large extent from operational surplus, will support our future revenues as newbuilds enter our fleet. We remain committed to the solid growth of our company, through flexible asset management and consistent chartering policy, for the benefit of our shareholders.''

Conference Call

On Thursday, February 10, 2011 at 9:00 A.M. EST, the Company's management team will host a conference call to discuss the financial results.

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.

A telephonic replay of the conference call will be available until February 18, 2011 by dialing 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 in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of Fourth Quarter 2010 Results

Net income increased by 34% to $31.1 million for the fourth quarter of 2010 from $23.2 million for the fourth quarter of 2009. This increase is mainly attributable to the following factors:

Net revenues: Net revenues were $41.3 million for the fourth quarter of 2010, a 13% increase compared to $36.6 million for the fourth quarter of 2009. Net revenues increased due to increases in the number of operating days and the Time Charter Equivalent ("TCE")(2) rate. The Company operated 15.3 vessels on average during the fourth quarter of 2010, earning a TCE rate of $29,395, compared to 14.0 vessels and a TCE rate of $28,605 during the fourth quarter of 2009. The increase in the TCE rate resulted mainly from higher time charter rates.

Vessel operating expenses: Vessel operating expenses increased by 21% to $6.3 million for the fourth quarter of 2010, compared to $5.2 million for the same period in 2009. The increase in operating expenses is mainly attributed to an increase in ownership days of 9% to 1,409 in the fourth quarter of 2010 from 1,288 in the fourth quarter of 2009 and to a further increase in crew, repairs, maintenance, spare parts and stores costs associated with the delivery of our latest newbuild vessel Venus Heritage. Daily vessel operating expenses increased by 10% to $4,463 for the fourth quarter of 2010, compared to $4,053 for the fourth quarter of 2009.

(Loss)/Gain on derivatives: Gain on derivatives increased to $4.9 million in the fourth quarter of 2010, compared to a loss of $1.2 million for the same period in 2009, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that we employ to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedged the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 3.2 years as of December 31, 2010. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Depreciation: Depreciation increased to $5.4 million in the fourth quarter of 2010, compared to $3.9 million for the same period in 2009, as a result of the increase in the average number of vessels operated by the Company during the fourth quarter of 2010.

Cash, time deposits & restricted cash: As of December 31, 2010, we had $100.4 million in cash and short-term time deposits, $5.4 million in long-term restricted cash and $50.0 million in a long-term floating rate note, from which the Company may borrow up to 80% under certain conditions. Additionally, we have $82.7 million in an undrawn loan commitments, $24.0 million to be secured by our existing vessel Panayiota K and $58.7 million to be secured by our newbuild with Hull number 1074 expected to be delivered by the third quarter of 2011, whilst our recently delivered post-panamax newbuild vessel Venus Heritage remains debt free.

(2) Refer to definition of "TCE" in Note 6 of Fleet Data Table.

Management Discussion of the Twelve months ended December 31, 2010 Results

Net revenues: Net revenues for the twelve months ended December 31, 2010 decreased by 5% to $157.0 million from $164.6 million during the same period in 2009. The Company operated 14.6 vessels on average during the twelve months of 2010, earning a TCE rate of $29,534, compared to 13.2 vessels and a TCE rate of $34,208 during the twelve months of 2009.

Net income: Net income for the twelve months ended December 31, 2010 was $109.6 million, a decrease of 34% from net income of $165.4 million for the twelve months ended December 31, 2009. The decrease of $55.8 million is mainly attributed to: (i) early redelivery income of $0.1 million, compared to $75.0 million, (ii) zero loss on asset cancellations, compared to $20.7 million, (iii) gain on sale of assets of $15.2 million, compared to none, (iv) a loss on derivatives of $8.2 million, compared to a loss on derivatives of $4.4 million, (v) depreciation of $19.7 million, compared to $13.9 million, (vi) interest expense of $6.4 million, compared to $10.3 million, (vii) vessel operating expenses of $23.1 million, compared to $19.6 million, and (viii) net revenues of $157.0 million, compared to $164.6 million, during the twelve months of 2010 and 2009 respectively.

          Unaudited Interim Financial Information and Other Data

                            SAFE BULKERS, INC.

        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

       FOR THE PERIODS ENDED DECEMBER 31, 2009 AND DECEMBER 31, 2010

                              Three Month Period      Twelve Month Period

(In thousands of U.S.          Ended December 31,      Ended December 31,

Dollars except for share   ----------------------  ----------------------

and per share data)           2009        2010        2009        2010

                            ----------  ----------  ----------  ----------

REVENUES:

Revenues                       37,435      41,908     168,400     159,698

Commissions                      (867)       (621)     (3,794)     (2,678)

Net revenues                   36,568      41,287     164,606     157,020

EXPENSES:

Voyage expenses                   (97)       (134)       (577)       (610)

Vessel operating expenses      (5,220)     (6,289)    (19,628)    (23,128)

Depreciation                   (3,941)     (5,421)    (13,893)    (19,673)

General and administrative

  expenses                      (1,544)     (2,011)     (7,046)     (7,018)

Early redelivery income             -           -      74,951         132

Loss on asset

  cancellations                      -           -     (20,699)          -

Gain on sale of assets              -           -           -      15,199

Operating income               25,766      27,432     177,714     121,922

OTHER (EXPENSE) / INCOME:

Interest expense               (1,523)     (1,652)    (10,342)     (6,423)

Other finance costs               (51)       (147)       (442)       (331)

Interest income                   298         380       2,164       2,627

(Loss)/gain on derivatives     (1,241)      4,882      (4,416)     (8,163)

Foreign currency (loss)/gain      (65)        287         838         281

Amortization and write-off of

  deferred finance charges         (20)        (50)       (106)       (266)

Net income                     23,164      31,132     165,410     109,647

Earnings per share               0.42        0.47        3.03        1.73

Weighted average number of

  shares                    54,513,787  65,878,212  54,510,587  63,300,466

                            SAFE BULKERS, INC.

             CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

               AS OF DECEMBER 31, 2009 AND DECEMBER 31, 2010

                                                  December 31, December 31,

(In thousands of U.S. Dollars)                        2009         2010

                                                  ------------ ------------

ASSETS

Cash, time deposits, and restricted cash               82,714      100,415

Asset held for sale                                    16,969            -

Other current assets                                    5,965        3,861

Vessels, net                                          373,924      541,244

Advances for vessel acquisition and vessels

  under construction                                    93,520       99,014

Other fixed assets, net                                    69            -

Restricted cash non-current                             4,763        5,423

Long-term investment                                   50,000       50,000

Other non-current assets                                  800        5,415

Total assets                                          628,724      805,372

LIABILITIES AND EQUITY

Current portion of long-term debt & liability

  directly associated with asset held for sale          50,242       27,674

Other current liabilities                              15,309       25,309

Long-term debt, net of current portion                420,994      467,070

Other non-current liabilities                          44,960       41,186

Shareholders' equity                                   97,219      244,133

Total liabilities and equity                          628,724      805,372

Fleet Data

                                    Three Months Ended  Twelve Months Ended

          &nbs

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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
Sun, 23 Jan 2011 14:16:33 -0800 Dry-Bulk Shipping Extends 2011 Drop to 20% on Australia Floods http://myhighdividendstocks.posterous.com/dry-bulk-shipping-extends-2011-drop-to-20-on http://myhighdividendstocks.posterous.com/dry-bulk-shipping-extends-2011-drop-to-20-on
The news for existing capesize ship owners is not good.  Rents for the largest vessels (capesize) are down to $9,143 per day.  That is the lowest level since January 2nd, 2009.  To understand the magnitude of the loss of revenues to the ship owners consider the fact that rents averaged $110,000 per day back in 2007 and 2008.  Those high rents caused ship owners to order more capesized vessels because they looked profitable.  Then the global recession caused by Keynesian central bank actions from 2003-2007.  The recession revealed the malinvestments of the ship owners.  Rents fell in free fall until January 2nd, 2009.
 
Capesized rents increased over the course of the next two years as the Keynesian central bankers pumped trillions of counterfeited dollars into the world's economies.  The false recovery coupled with a glut of capesized vessels are now putting pricing pressure on capesized rents.
 
However, this is somewhat good news for Safe Bulkers Inc. (SB).  They entered into a shipbuilding contract for the construction of a Chinese-built, drybulk Capesize-class vessel of approximately 180,000 deadweight tons at a contracted price of $53 million, with an expected deliver of the third quarter of 2012.
 
One of the reasons that I like Safe Bulkers is that this vessel will be employed for ten years at a gross daily charter rate of $24,810, less 1.25% total commissions.  Most of their existing fleet along with the new vessels are locked in for several years.  Their earning power is foreseeable.  There ships will be bargains when worldwide inflation takes off from the trillions of dollars printed in late 2008 to the present.
 
 
Dry-Bulk Shipping Extends 2011 Drop to 20% on Australia Floods
January 19, 2011, 11:20 AM EST
By Alistair Holloway

Jan. 19 (Bloomberg) -- The Baltic Dry Index, a measure of commodity-shipping costs, extended this year’s decline to 20 percent as Australian flooding curbed cargo volumes and new capesize ships joined the fleet.

The index fell 21 points, or 1.5 percent, to 1,411, according to data from the Baltic Exchange in London. Daily rents for capesizes that haul coal and iron ore led declines, dropping 4.1 percent to $9,143, the lowest level since Jan. 2, 2009. That means the biggest ships in the gauge are the cheapest to hire.

Australia’s Queensland state, producer of about half the world’s seaborne supply of coking coal to make steel, suffered its worst flooding in 50 years this month, shutting mines and railroads. The state today cut its coking-coal output forecast for the year ending June 30 by 10.5 percent. The capesize fleet’s carrying capacity will swell by 18 percent this year, according to fund managers and analysts surveyed this month by Bloomberg.

“It’s a combination of Australia, plus continued deliveries of capesizes,” Philippe van den Abeele, managing director of Castalia Fund Management (U.K.) Ltd. in London, said by phone. “We are down to levels that are really hurting owners.”

Capesize rates declined today for a 17th session, the longest streak since November 2008. The capesize fleet’s carrying capacity expanded by 23 percent last year, according to an estimate by Clarkson Plc, the world’s biggest shipbroker.

Negative Rate

The lack of cargoes in the Pacific Ocean has led some shipowners to cover part of clients’ costs in an effort to hire out vessels. Costs on the C11 journey for shipments to Europe from Asia were at minus $825 a day today, compared with minus $879 yesterday. The rate went negative on Jan. 13, a first for any dry-bulk voyage reported by the exchange, which publishes daily assessments for more than 50 routes.

The vessel surplus stems from orders placed in 2007 and 2008, when daily capesize income averaged about $111,000. Rates reached a record $233,988 in June 2008 before plunging 99 percent over the next six months to $2,316 as economies entered the first global recession since World War II.

Rates to hire panamax vessels that compete with the larger capesizes for coal and iron-ore cargoes and also ship grains fell 3.5 percent to a daily $14,166 today. Supramaxes gained 0.5 percent to $15,023 and handysizes rose 0.7 percent to $11,402.

--Editors: Dan Weeks, John Deane.

Link to the original article: http://www.businessweek.com/news/2011-01-19/dry-bulk-shipping-extends-2011-drop-to-20-on-australia-floods.html

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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
Tue, 16 Nov 2010 21:48:59 -0800 I like Safe Bulkers (SB). Buy it when the market tanks http://myhighdividendstocks.posterous.com/i-like-safe-bulkers-sb-buy-it-when-the-market http://myhighdividendstocks.posterous.com/i-like-safe-bulkers-sb-buy-it-when-the-market Safe Bulkers (SB) Declares $0.15 Quarterly Dividend; 10.7% Yield

November 8, 2010 5:27 PM EST

Safe Bulkers, Inc. (NYSE: SB) on Monday announced that its Board of
Directors has declared a cash dividend on its common stock of $0.15
per share, $0.60 annualized.

The dividend is payable on or about November 26, 2010 to shareholders
of record at the close of trading of the Company's common stock on
November 19, 2010. The ex-dividend date is November 17, 2010.

The yield is 10.7%

http://www.streetinsider.com/Dividends/Safe+Bulkers+(SB)+Declares+$0.15+Quarterly+Dividend%3B+10.7%25+Yield/6087085.html

I've done a lot of research on this company, but not a lot of
writing/blogging on it. I would by this stock on any market
correction.

Disclosure: I don't own any SB right now.

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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