Looking for some extra income for your portfolio? As it happens, 3 of our favorite high dividend stocks in the LNG and Crude Oil shipping industries should be going ex-dividend next week, the week of 10/31/16 through 11/4/16.
We recently added a Services table to our High Dividend Stocks By Sectors Tables, which is where these 3 dividend stocks reside.
Profiles:
GasLog LNG Partners LP: GasLog Partners LP (NYSE:GLOP) currently owns a fleet of 8 LNG vessels, which it leases out on fee-based, long term contracts. GLOP was founded and went public in 2014, and is based in Monaco.
Golar LNG Partners LP: Golar LNG Partners LP (NASDAQ:GMLP) owns and operates floating storage regasification units -FSRUs and liquefied natural gas – LNG carriers under long-term charters in Brazil, the UAE, Kuwait and Indonesia. GMLP has a fleet of 6 FSRUs and 4 LNG carriers, and also leases its vessels. Golar GP LLC serves as the general partner of Golar LNG Partners LP. GMLPwas founded in 2007 and is headquartered in Hamilton, Bermuda.
Navios Maritime Midstream Partners LP: Navios Maritime Midstream Partners LP (NYSE:NAP) currently owns 6 VLCC vessels. (VLCC stands for “very large crude carrier”.) NAP charters its vessels under long-term employment contracts to international oil companies, refiners, and large vessel operators. Navios Maritime Midstream Partners GP LLC is NAP’s general partner, and supports NAP with selling it fully-contracted dropdown vessels. NAP is based in Monaco.
Dividends: Although they haven’t declared yet, all 3 companies should be declaring these distributions this week. GMLP and NAP have the highest dividend yields of the trio, but GLOP’s 8.75% is still an attractive yield.
Covered Calls: All 3 stocks now have options available, and we’ve updated this February call option trade for GMLP in our Covered Calls Table, where there’s also a trade for GLOP listed. This call option expires in mid-February, so there should be 2 quarterly distributions prior to the option expiration:
This table details the 3 main income & capital gains scenarios for this approx. 4-month trade – Static, Assigned, and a post-ex-dividend assignment:
Cash Secured Puts: GMLP and GLOP also have attractive put-selling options available currently. Our Cash Secured Puts Table can give you more details about this GMLP trade, plus a put trade for GLOP, and over 25 other income-producing put trades:
NAP also has options available, but here’s the rub – they’re not as liquid, and the current put bid is very low, at only $.30 for NAP’s February 2017 out of the money $10.00 put strike. However, is was last at $.85, and the ask is at $1.40, so you may be able to improve upon the $.30 bid:
Valuations: NAP has the lowest valuations in this group, and is selling below Book Value, but the Price//DCF for GLOP and GMLP is still pretty cheap.
Financials: All 3 firms have roughly similar Operating Margins, but, again, NAP outshines with its much lower debt load, and out-sized Current Ratio.
Disclaimer: This article is intended for informational purposes only, and is not intended as personal investment advice. Please practice due diligence before investing any of the stocks listed in this article.
Disclosure: Author owned shares of GMLP, GLOP, and NAP at the time of this writing.