with yea5 bucks in cash we have a nice runway for years of dividends
I believe we will hear about the div plan sooner than late. Could be end of this yr or early next yr. I believe the payouts will start before the profits because their contracts are dated far out and they will feel comfortable knowing the profits will be coming as the BDI increases the ships coming of lease will continue to get better rates and then trend will continue for 2-3 years. In 2016-2017 we will hear about ship shortages. Just like we hear there is no housing inventory. 2 years ago there were tons of house on the market. How quickly things can turn. The same thing happened for the oil drillers over the last 12 yrs. 2 boom cycles. Shipping will have another boom cycle and will less players. DSX is the best name in shipping and will continue to be bought. up 40% over the last 12 months vs 25% for SP. Trading at 65% of book value we have a stock that will look very cheap as earning estimates will be way too low and the div will have a nice yield of 5-10%
Management mentioned on few occasions that in case sector turns around and company still has unused cash, then this cash will be paid out as dividend. In other words when turnaround comes, either company ends up with more ships earning great cash (to pay dividend) or it will be less ships and more cash (to pay the same dividend).