Eagle Eye Opener

210 Percent Dividend Gain in Less Than Five Years

210 Percent Dividend Gain in Less Than Five Years (Seeking Alpha)

Seaspan Corporation (SSW) owns more than 70 ships that it leases out to corporations. But it appears the company also transports value to income investors. Since 2009, the SSW’s quarterly dividend has grown from 10 cents per share to today’s 31 cents. However, shipping is a cash-intensive business. For this reason, Seaspan recently issued $125 million worth of preferred series E shares with an 8.25 percent yield at par, which helped bring the company to more than $100 million in free cash. And with SSW paying out about $85 million in dividends for the last period, those series E shares are expected to add another $10 million to the payout. Looking ahead, as long as corporations need to ship goods, Seaspan’s a good bet to generate income for investors from that need.

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