Soaring shipping rates due to congestion at ports bode well for shipping stocks. Moreover, because the shipping industry is expected to witness high demand due to worldwide supply-chain disruptions, we think it could be wise to bet on fundamentally sound and high dividend-yielding shipping stocks ZIM Integrated (ZIM) and Eagle Bulk (EGLE). Read on.The shipping industry suffered a severe setback amid the COVID-19 pandemic. The congestion at ports continues to worry investors, and according to a Forbes report, shipping bottlenecks could last well into 2022. However, conditions are also leading to a rise in shipping rates, which is benefitting shipping stocks.
Furthermore, according to a Research and Markets report, the global shipping container market is expected to reach $14.88 billion in 2021. It is further expected to grow at a 6% CAGR to $20.02 billion by 2026. In addition, in the wake of the pandemic disruptions, many companies have resumed paying dividends. According to a Reuters analysis of Refinitiv data, for major companies with a market capitalization of at least $1 billion, total pay-outs to shareholders are estimated to be $1.37 trillion in 2021.
Therefore, we think high dividend-yielding and quality shipping stocks ZIM Integrated Shipping Services Ltd. (ZIM) and Eagle Bulk Shipping Inc. (NASDAQ:EGLE) could be solid bets now.