Nordic American Tanker's Nice Dividend Boost - Tim Plaehn

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Nordic American Tanker's Nice Dividend Boost
May 06, 2008 07:11 AM UTC

Tim Plaehn

Return	Risk
-20.94%	MID

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Symbol	Sentiment	Start	Return	Closed
NAT		05/06/08	-2.84%	07/07/08

Via Long Investment Ideas from Seeking Alpha:

Nordic American Tanker (NAT)
is out with its first quarter results and boosted the dividend
136% from Q3 and Q4 of 2007. Nordic American runs a fleet of 12 Suezmax
tankers all in the spot market. The first quarter results are good news
and the company indicated the 2nd quarter of 2008 is off to a great
start.

The revenues for NAT are entirely derived from spot market
rentals of their oil tankers. The company has a policy to pay out all
of a quarter’s free cash flow as dividends. Dividends fluctuate
tremendously, as do spot market rates for their ships. Nordic American
believes the spot market will give the best returns on their tankers
over time. Investors have to live with the fluctuating dividends,
although the stock has historically yielded over 10%. Here are couple
of notes from the press release:

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