Navios Maritime Midstream Partners L.P. (NAP)
What sets Navios apart from other shippers, aside from the memorable ticker symbol, is its willingness to push the envelope when it comes to dividends. The current dividend yield is 17.26%, and while yields like that are very often the result of sudden misfortunes that have already taken a whack out of the stock price, that doesn’t seem to be the case here, for while NAP shares were a bit higher nine months ago, they were also a bit lower quite a bit more recently. If you wonder how a company can operate like this, well, don’t assume all the cash is from operations. This game is about capital allocation—capital in the form of petroleum transporting ships. You can bet the folks at Navios know their ships, as well as when to buy and sell them. When a company like this does overextend, it usually raises cash from new shares of stock. No one wants to suffer dilution, but even if the dilution cuts the dividend in half, you’ll still be getting 8.6% on your initial investment.
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