From 2008 through 2012, each year the annual dividends paid by TNK exceeded $1. In some years it was more than $2, and a quarterly dividend was once over a buck itself. This is what we are waiting for. Not some puny increase to 6 cents. When the dividend gets back to that level then stock will be in the double digits. this is where we are headed guys.
I do not think that doubling the dividend would have had any real effect on the stock price. In fact, I think it would be a negative. People like me want them to go back to the variable dividend based on cash flow. When that happens you will see quarterly dividends in the 30 and 40 cent range based on the cash flow they are now earning.
Your post is ridiculous. TNK management works for TK. They do what is in the best interest of their corporate parent, who is also TNK's largest shareholder. When TK decides that it wants its daughter company TNK to start spinning off more cash, TNK will reinstate a dividend policy based on cash flow. For now, TK has decided that TNK still needs to build up its balance sheet a little more. If spot prices continue strong, TK will eventually direct this daughter company to start sending some of its cash up the chain, and all of us other shareholders will benefit from that.
As long as the fundamentals stay positive, you have absolutely nothing to worry about. This a boring stable company. Rates remain very profitable, and there is no reason to expect them to collapse anytime soon. It's not a trading stock.
Don't ever forget. TNK is just one part of a larger organization. TNK is controlled by TK, and TNK does what is best for TK, always.
Teekay Corporation is a portfolio manager and project developer in the marine midstream space that owns a 2 percent general partner interest, all of the outstanding incentive distributions rights and a portion of the outstanding limited partner interests in Teekay LNG Partners L.P. (TGP) and Teekay Offshore Partners L.P. (TOO). In addition, Teekay has a controlling ownership interest in Teekay Tankers Ltd. (TNK) and a fleet of directly-owned vessels. The combined Teekay entities manage and operate consolidated assets of over $12 billion, comprised of approximately 200 liquefied gas, offshore, and conventional tanker assets.
Quantuon, I disagree. The only real reason TNK even exists is for tax purposes and to spin off cash to its corporate parent and majority shareholder TK. Once the business is stable again, I expect that they will re-assume that role again.
I have always liked TNK, mostly because they are a daughter company of TK and therefore have that underlying support that many others do not have, It seems like they weathered the tanker depression better than most. Looking forward to a reinstatement of the dividend policy based on available cash sometime soon.
Many of their ships are Very Old. Probably trading on a discount. Notwithstanding herb's bs about maintenance, many would rather not ship their crude on such old vessels when they have a choice.