Crow's Nest

Heading into port.

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Ahoy SLO Seafarers,

May your holidays be filled with peace and happiness.

After climbing to the highest highs and falling to the lowest lows, my portfolio has recovered roughly half the losses it sustained in the month of November.

On Monday, 12/03, I made a few changes to Crow's Nest Portfolio of maritime shipping companies. These small changes will carry me thru to the end of the contest. Other than rebalancing, I added small (3%) positions of 4 more companies. Three of these companies have already been in the portfolio and blogged on: Danaos Corporation (DAC), Omega Navigation Enterprises, Inc. (ONAV), & Tidewater Inc. (TDW). The only new new company added is Hornbeck Offshore Services Inc. (HOS). Hornbeck provides offshore supply vessels (OSVs) to the offshore oil and gas exploration and production industry. It operates in two segments, OSV and Tug and Tank Barge. It's very similar to Tidewater. All the companies were selected based on strong fundamentals and just being good companies.

Also, in the last ten days I've collected over $5,000 in dividends. Shipping stocks, on average, are excellent dividend payers. The sector average is about 5%. Tanker companies pay a higher dividend than drybulkers, container shippers, and others. The highest dividend payers in Crow's Nest portfolio are Aktieselskabet Dampskibsselskabet Torm (TRMD) at 13.8%, Omega Navigation Enterprises, Inc. (ONAV) at 11.8%, and Golar LNG Ltd. (GLNG) at 9.9%. On the low end is DryShips, Inc. (DRYS) at only 0.9%.

Good luck to everyone.

Robert

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Sailing into Retirement.

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Ahoy Mates,

May your holidays be bright and merry.

This quick post is an open response to the kind comments and questions from gullipalli regarding my last post, Heading Into Port.

Would I put my retirement money in high dividend paying shipping stocks?

Yes, indeed! I have a very conservative 401K, all mutual funds anchored by Fidelity Spartan Total Market Index (FSTMX) and Fidelity Spartan International Index (FSIIX). No load and low fees are the way to go. Put your money in every payday and forget about it. On the other hand is my Roth IRA. That's where I have my fun. 100% shipping stocks and will never have to pay taxes on the dividends. Trade as often as you like. Everyone who earns any income at all ought to have a Roth IRA, it's a great deal.

High dividend paying (shipping) stocks with principal as safe as MO or DEO?

By principal I assume you mean a stable stock price and a company that will last. No stock or anything in this world is risk free and unchanging but some appear to be so more than others. Diageo (DEO) has been around for 250 years or so and Altria Group (MO) for about 150 years, under different names. The highest paying dividend stock in Crow's Nest is Aktieselskabet Dampskibsselskabet Torm (TRMD). It's dividend right now is more than twice Altria. The Danish company that operates both product tankers and dry bulk has been around since it acquired it's first ship, the s/s Alice, in 1889. The company has gone thru both good and bad times, including a couple of world wars, but it's still here and I believe a great investment. With shipping companies you have to expect a lot of volatility and wild price swings. It takes a while to get your sea legs, just keep you eyes on the horizon.

Enjoy life and beware sea hags underneath the mistletoe.

Robert

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