If the market remains stable (or to the upside), NMM will go higher.
Many investors love high dividend yielding growth companies to mix in with their basket of stock holdings.
Though it may sound like a reach, I'm sticking with the past call of $24 by 12.31.2014.
$20 may have been breached, but it will take a re-test or two of 20 for me to be sure. Based on expected good shipments this year and next, I would think we might see more upside for awhile...
I got my share information from Scottrade that shows 78.9m shares outstanding which is different than both float and authorized shares.
In any event, your concern over the ability of a company to maintain dividends is most appropriate. In my experience, however, the single most important measure to consider when trying to determine the ability to pay dividends is having earnings that generate adequate cash to pay the dividend. What I have found to be very misleading is the use of GAAP in determining ability to pay dividends because GAAP takes into account any number of non-cash items when arriving at eps. This is the reason that NMM's management has given us a different measure, Surplus Cash, (not surplus capital), to use. Surplus Cash is simply a better measure to use in determining their ability to pay dividends and as pointed out above, their Surplus Cash, is more than adequate to cover the dividend and it is growing. Other high dividend paying companies use a similar measure to determine their ability to pay dividends although they may call the measurement by various names including CAD, AFFO, and Core Earnings.
I also am an income investor and I believe that not only is the dividend for NMM safe, but that it could and likely will be increased in the next year.
ALWAYS keep a "CORE" position here. Mid 20's next.
I was figuring on the float, not the authorized shares, since the divvy isn't paid on them. And depending on surplus capital to pay dividends is a one=way street that leads to decline. Look, fact is, their earnings are not covering their divvys and any way you slice it, a reckoning is coming. Most likely in the form of a dividend reduction. You can't put everything you make and have on hand into the dividend in any company. and expect to stay in business. Navios IS a solid company and I'm sure they will continue to provide growth and income for their shareholders, just not at the current rate, that's all I'm saying and the reason for my sell sentiment. But the prospect for appreciation of the share price looks good. It all depends on what you want out of your investment. I want income.
Currently there are 78.9m shares outstanding with an annual dividend rate of $1.77 which equals an annual dividend of $139,653,000.
From last quarters financial statment:
"Navios Partners generated an Operating Surplus for the six month period ended June 30, 2014 of $98.8 million, as compared to $71.2 million for the six month period ended June 30, 2013. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership's ability to make quarterly cash distributions."
Therefore, the Operating Surplus for the first half of the year when annualized would be: $197,600,000. However one should also consider that the shipping business, especially for large bulk carriers is some what seasonal and that the first half of the year is typically slower with lower rates than the second half of the year. Also, there are additions to the fleet that will increase revenues as well as the Operating Surplus over what it was for the first six months.
Finally, with most of the fleet on long-term charters, there is somewhat of a floor under the Operating Surplus and that the Operating Surplus is not only stable but will increase as the unchartered days are leased out during the next several months.
My conclusion is that not only is NMM very adequately covering their dividends but that the Operating Surplus income per share will be increasing for the foreseeable future.
In any event, management certainly feels confident in the long term ability of the company to pay their dividends for the rest of this year and for all of 2015 with the possibility/probability of an increase in dividend payments during next year.
I've been waiting for 6 months for this. I'm still not selling or anything. This is a great stock at the perfect time to own shipping. I expected this appreciated price at the beginning of the year
The CEO has long said that 2014 through 2016 looks to be very good for dry bulk shipping. Let's hope he is right with that thought...
Mar 20, 2014 call - NMM $24 by 12.31.2014
Keep the faith, while enjoying those steady quarterly dividends!
Better than any bank certificate of deposit