Latest news with #NordicAmerican
Yahoo
27-04-2025
- Business
- Yahoo
The silver lining in a market downturn: passive income opportunities galore
Millions of Britons invest for a passive income. And one of the most simple premises is that downturns can be a gift. When share prices fall, dividend yields rise — not because companies are paying more, but because investors are paying less to own those income streams. In other words, the same £100 dividend might now cost £1,500 instead of £2,000. For income-focused investors, that matters. The recent sell-off, especially in US stocks, has left even reliable dividend-payers trading at multi-year lows. Blue-chip stocks, REITs, and even select infrastructure plays are now offering yields not seen in years. While markets may remain volatile, the cash flows underpinning many of these businesses remain intact. That creates a rare window. It's an opportunity to set up attractive income for the long term. As always, careful selection and diversification are key, as dividens are never guaranteed. However, in every correction or bear market, passive income investors have found reasons to be quietly optimistic. The stock market has been chaotic in recent weeks. While most of the action has been in the US, British and European stocks have experienced plenty of volatility. Of course, uncertainty still reins, with Trump's administration continually moving the goal posts. That does make it more challenging to invest. But for those focused on income, short-term turbulence can be a distraction rather than a deterrent. Dividends are typically paid on business fundamentals, not day-to-day sentiment. Provided the underlying company remains profitable and committed to shareholder returns, the income case can remain strong — even when the share price doesn't. And in fact, periods of political and economic noise often lead to mispricings. Income-focused portfolios, grounded in value and cash flow, have historically outperformed in such conditions. For investors willing to filter out the noise, the current climate could be a chance to accumulate high-yield assets at unusually attractive prices. Diversification is always key, and amid the current volatility, it's even more important. However, one individual stock to keep an eye on could be Nordic American Tankers (NYSE:NAT). Nordic American Tankers is a dividend giant that deserves close attention, especially in today's volatile markets. The company boasts an impressive record, having paid a dividend every quarter for 27 years, and currently offers a forward yield near 9.4%. Nordic American is a tanker company, as the name suggests, and is actively expanding its fleet, acquiring two fully financed Suezmax tankers in 2025, which should enhance both earnings and dividend capacity as the global fleet ages and supply remains tight. The company is well-positioned to benefit from persistent supply shortages, as new tanker orders remain low and older vessels are retired, supporting higher day rates over the long term. However, investors should be wary of risks. Nordic American's current dividend may be unsustainable given the earnings forecast. As such, a reduced payment may be expected in the near term. Additionally, the company's heavy exposure to the spot market and a rising debt-to-equity ratio amplify both potential and risk. Nonetheless, it's a favourite of some of the most successful funds in the world, include Renaissance Technology, and investors who have typically bought at a price-to-book discount have made money over the years. It's a stock that on my radar, but I'll likely keep my powder dry for now. The post The silver lining in a market downturn: passive income opportunities galore appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
26-04-2025
- Business
- Yahoo
The 2025 stock market sell-off could be a rare opportunity for second income investors
The 2025 stock market sell-off has rattled investors worldwide. Major indexes, including the FTSE 100 and S&P 500, plunged 4%-5% on multiple days and many stocks now down 20% or more from their 52-week highs. This was all triggered by Trump's aggressive tariff policies and escalating global trade tensions. The sell-off has become the largest market decline since the Covid-19 crash of 2020. However, while the volatility and uncertainty are unsettling, history suggests that such rare market events can present exceptional opportunities for long-term and second income investors. But what makes this sell-off different? Well, it's fair to say that uncertainty is rife. This year's downturn was sparked by sweeping US tariffs that led to panic selling and a sharp spike in volatility. Investors initially fled to bonds, but even those markets became unstable as yields surged, reflecting a loss of confidence in US fiscal policy and fears of rising inflation. While the immediate outlook remains uncertain, these conditions have driven down share prices across sectors, including many reliable dividend payers. Investing during market turmoil is never easy, but history shows that those who buy when fear is high and valuations are depressed can reap significant rewards over time. While a full recovery may take months or even years, global markets have always bounced back from past crises. Periods of indiscriminate selling often result in quality income stocks trading at attractive valuations. However, the market's really mixed and we have seen some investors search for shelter in UK-listed dividend stocks. US income stocks however, do appear harder hit. This could be a rare opportunity. Nordic American Tankers (NYSE:NAT) stands out as an intriguing second income prospect in 2025. Like many of its peers, the share price has shown weakness in recent months. In fact, over the past year, Nordic's stock has dropped 35% amid weaker demand and normalising charter rates. In Q4, earnings per share came in at just $0.01 and revenue missed expectations by $5m. This marks the end of an unusually strong period for tanker operators, as spot TCE (Time Charter Equivalent) rates have fallen sharply from last year's highs — this had been driven by geopolitical disruptions that have since eased. However, Nordic American's appeal for income investors lies in its robust dividend outlook. Analysts forecast a forward yield of 9.4% for 2025, rising to 14.7% and 17.2% in the following years. This is supported by a tight global supply of younger Suezmax tankers and limited shipyard capacity for new builds. The company's expanding fleet — now 21 vessels — also positions it to benefit if spot rates rebound, and insider buying signals management's confidence. Yet risks are significant. The company's heavy spot market exposure and high debt — net debt at $210m and a debt/equity ratio of 0.53 — make it vulnerable to further rate declines and market volatility. Additionally, the company's declining book value and slow fleet renewal raise questions about long-term capital management. In short, for second income seekers, Nordic American offers high yield potential, but this comes with elevated risk and cyclical exposure. It's one that I personally find very interesting. However, I'll keep my powder dry for now. The post The 2025 stock market sell-off could be a rare opportunity for second income investors appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Nordic American Tankers Ltd (NYSE: NAT) – For shareholders/investors
Monday, April 7, 2025 Dear Shareholders and Investors, I wish personally to reassure our shareholders/investors that Nordic American is in a very strong position. In these volatile markets we have maneuvered conservatively, creating an upwards path for NAT. All the best, Sincerely, Herbjorn HanssonFounder, Chairman & CEO Nordic American Tankers Ltd. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words 'believe,' 'anticipate,' 'intend,' 'estimate,' 'forecast,' 'project,' 'plan,' 'potential,' 'will,' 'may,' 'should,' 'expect,' 'pending' and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K. Contacts: Bjørn Giæver, CFO Nordic American Tankers Ltd Tel: +1 888 755 8391 Alexander Kihle, Finance ManagerNordic American Tankers LtdTel: +47 91 724 171 Sign in to access your portfolio
