Based on the level of risk associated with Diana Shipping as well as prospects for long-term capital appreciation, what % yield do you believe is appropriate for Diana. I'm thinking around 10%, which makes DSX a bargain at anything less than around 20 dollars...because it does not reinveset it's profits, I think DSX should be evaluted as a yield play. Therefore, I believe a price target of 20 bucks is appropriate. Does anyone have a different target/different valution measure for this stock?
It would be very dangerous to assign ANY stock price based on a fluctuating payout policy. DSX declares a dividend payment which reflects the prior quarters earnings. This amount will be a constantly moving target as shipping rates, and therefore earnings, rise and fall.
I would hope all investors do their own DD before investing for income in this sector.