Nordic American Tankers Limited (NYSE:NAT) Raises Dividend to $0.27 Per Share

Key Points

• Nordic American Tankers raised its quarterly dividend 22.7% to $0.27 per share, payable September 24 to shareholders of record on September 10. The dividend implies an annualized payout of $1.08 and a 16.0% yield.
• The dividend appears financially difficult to sustain: the company’s payout ratio is 251.4%, while analysts expect a future payout ratio of 266.7% based on projected earnings.
• Nordic American Tankers shares rose 3.5% to $6.75, near the upper end of their 12-month range. In its latest quarter, the company reported $0.17 in EPS, slightly above estimates, but revenue of $77.51 million fell short of forecasts.

Nordic American Tankers Limited (NYSE:NAT - Get Free Report) declared a quarterly dividend on Thursday, August 27th. Investors of record on Thursday, September 10th will be given a dividend of 0.27 per share by the shipping company on Thursday, September 24th. This represents a c) annualized dividend and a yield of 16.0%. The ex-dividend date of this dividend is Thursday, September 10th. This is a 22.7% increase from Nordic American Tankers's previous quarterly dividend of $0.22.

Nordic American Tankers has decreased its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Nordic American Tankers has a dividend payout ratio of 251.4% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Nordic American Tankers to earn $0.33 per share next year, which means the company may not be able to cover its $0.88 annual dividend with an expected future payout ratio of 266.7%.

Nordic American Tankers Stock Up 3.5%

NYSE:NAT traded up $0.23 during trading hours on Thursday, hitting $6.75. 7,537,712 shares of the company's stock traded hands, compared to its average volume of 4,126,351. The stock's fifty day moving average price is $6.31 and its two-hundred day moving average price is $5.74. The firm has a market cap of $1.43 billion, a P/E ratio of 24.99 and a beta of -0.57. The company has a debt-to-equity ratio of 0.83, a quick ratio of 2.75 and a current ratio of 3.00. Nordic American Tankers has a twelve month low of $2.96 and a twelve month high of $7.20.

Nordic American Tankers (NYSE:NAT - Get Free Report) last announced its quarterly earnings data on Thursday, May 28th. The shipping company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. Nordic American Tankers had a return on equity of 9.16% and a net margin of 24.19%.The firm had revenue of $77.51 million during the quarter, compared to analyst estimates of $81.86 million. On average, research analysts expect that Nordic American Tankers will post 0.58 earnings per share for the current fiscal year.

About Nordic American Tankers

Nordic American Tankers Limited is a Bermuda-based shipping company specializing in the ownership and operation of Suezmax crude oil tankers. The company’s fleet is employed on the spot and period charter markets, transporting crude oil across major global trade routes. By focusing on commercially flexible employment strategies, Nordic American Tankers seeks to optimize vessel utilization and generate stable income for shareholders.

Founded in 1995 and headquartered in Hamilton, Bermuda, Nordic American Tankers maintains technical and commercial management arrangements through established ship-management partners.

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