Danaos Corporation (NYSE:DAC) Declares Quarterly Dividend of $0.85

Key Points

• Danaos Corporation has declared a quarterly dividend of $0.85 per share to be paid on August 28th, reflecting a dividend yield of 3.7%.
• The company reported earnings per share of $6.36, which was below analysts' expectations, although it achieved $262.15 million in revenue for the quarter, exceeding forecasts.
• Danaos has a strong payout ratio of 12.9%, indicating that the dividend is well covered by earnings, with projections suggesting continued financial stability.

Danaos Corporation (NYSE:DAC - Get Free Report) declared a quarterly dividend on Tuesday, August 5th, Wall Street Journal reports. Stockholders of record on Tuesday, August 19th will be given a dividend of 0.85 per share by the shipping company on Thursday, August 28th. This represents a c) annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Tuesday, August 19th.

Danaos has a payout ratio of 12.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect Danaos to earn $28.23 per share next year, which means the company should continue to be able to cover its $3.40 annual dividend with an expected future payout ratio of 12.0%.

Danaos Stock Performance

Shares of NYSE DAC traded up $0.39 during trading on Friday, hitting $94.69. The company had a trading volume of 48,075 shares, compared to its average volume of 62,426. The stock has a 50 day simple moving average of $88.82 and a 200 day simple moving average of $83.07. The company has a debt-to-equity ratio of 0.20, a quick ratio of 4.18 and a current ratio of 5.36. Danaos has a 12 month low of $65.40 and a 12 month high of $96.47. The firm has a market capitalization of $1.80 billion, a P/E ratio of 3.90 and a beta of 1.42.

Danaos (NYSE:DAC - Get Free Report) last issued its earnings results on Monday, August 4th. The shipping company reported $6.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.52 by ($0.16). The business had revenue of $262.15 million for the quarter, compared to the consensus estimate of $247.26 million. Danaos had a net margin of 44.62% and a return on equity of 13.88%. As a group, analysts anticipate that Danaos will post 29.21 earnings per share for the current year.

Danaos announced that its board has initiated a share buyback program on Monday, April 14th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the shipping company to buy up to 6.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity.