Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Global shipping doesn't dominate the headlines like Big Tech orAI, but it is a mission-critical link in the global commerce chain. This business sector has quietly been building fortunes for investors for centuries, and that trend continues today. That helps explain why Deutsche Bank analysts are enamored with a global shipping stock paying a double-digit dividend.
Global shipping, like real estate, is an industry that has numerous different sectors. Although the most recognizable global shipping sector may be the flow of finished goods from China to Europe and the Americas, transporting raw materials like iron ore and aluminum is also very lucrative. This is known as the "dry bulk" sector, and it's paying investors big dividends because without it, global manufacturing would come to a halt.
Don’t Miss Out:
A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.Interest rate cuts could supercharge the real estate industry. Get started investing in commercial real estate today.
Deutsche Bank analysts have noticed and believe the dry-bulk sector is rising. Their data shows that shipping rates for the Capesize ships that handle dry bulk products have gone from $9,000/day to $28,000/day in the last twelve months. That's an increase of over 300%, which translates into serious profits for investors in dry bulk shipping companies.
One of those companies is Star Bulk Carriers (Nasdaq:SBLK). This is a rapidly growing global shipping company that handles a full range of dry bulk products, which are broken down into two sections:
· Major Bulk-(e.g. coal, grains, ore)
· Minor Bulk-(e.g. sugar, cement)
Star Bulk Carriers was already a global leader in the field when it acquired competitor Eagle Bulk in the last quarter of 2023. This $2.1 billion transaction made Star Bulk Carriers the largest bulk shipping company on the Nasdaq. It also allowed Star Bulk to expand its fleet, which now includes 161 ships of various sizes.
Trending: This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.
Star Bulk Carriers has a market cap of $2.46 billion, and it just reported blockbuster Q2 2024 earnings of $352.8 million. That was nearly a 50% improvement over the previous year, and the extra profits are leading to some impressive dividends. Star Bulk Carriers is paying a strong 12.8% dividend on its $21.86 share price. That means Star Bulk investors are set to earn $2.79/share for the upcoming quarter.
That's a great return by any measure, and Star Bulk's position as one of the largest operators in its sector indicates this company is primed for continued earnings. There is, of course, never a guarantee of future dividends, but it's worth noting that Star Bulk Carriers has paid over $1.2 billion in investor dividends since 2021.
As always, remember that every business sector has risks, and global shipping is no different. Elevated fuel costs or a global economic slowdown could impact profits in the case of Star Bulk Carriers. With those caveats, Star Bulk Carriers has the potential to be a good dividend stock, and the fact that it's available at an affordable share price doesn't hurt either.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Keep Reading:
Fractional real estate is the next big opportunity for building passive income — get started for just $100.
What is private credit exactly? Find out more about the alternative asset with double-digit potential returns – that's outperformed equities and high yield bonds in the last 3 market downturns.
This article Deutsche Bank Loves This Stock Paying A Near 13% Dividend originally appeared on Benzinga.com