By nature, some sectors of the market are known for their high yields. Thanks to a variety of factors—such as high cash flows, steady fixed costs, tax structure, etc.—some simply pay more. Utilities and REITs come to mind. But they aren’t alone in their high yields. There are plenty of others. And one of them is making a big comeback.
We’re talking about global shipping stocks.
After years of suffering, the owners of tankers and dry bulk ships are finally regaining their mojo. Day rates are surging, while supply chains remain constrained. The best part is that once mighty dividends have finally started to grow by double digits.
For investors looking to boost their portfolio’s income, the shippers may offer a solution—albeit one with some risk—to beat inflation.
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