think you missed the boat on retirement? why your ship hasn’t sailed just yet

25
Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet Photo credit: Flickr/Wood Hibbard

Upload: the-motley-fool

Post on 20-May-2015

6.448 views

Category:

Business


1 download

DESCRIPTION

Too many Americans feel like they've missed the boat for retirement. They haven't saved enough and what they have saved isn't providing enough income to pay the bills. That doesn't have to describe you. Investing in high-yielding stocks could be the lifeboat your retirement needs. And, what better boat to use than boring shipping related stocks like Nordic American Tankers (NYSE: NAT), Seaspan (NYSE: SSW) or Textainer Group (NYSE: TGH). An investment in Nordic American Tankers is an oil fueled bet that has the potential to earn substantial dividend income as the company leases oil tankers to energy companies. While the company's dividend payment is nearly as volatile as the price of oil, Nordic American Tankers still has a very long history of paying something to its investors each quarter. Meanwhile, Seaspan and Textainer represent an investment in two different sides of the containership industry. Seaspan owns and leases out containerships on long-term charters to shipping companies. Textainer, on the other hand, leases out the containers to shippers on long-term leases. These long-term contracts enable both companies to pay solid dividends that continue to grow over time. I've created the below slideshow to help you learn more about these three stocks. The presentation will show you how you can fuel some more income into your portfolio by getting to know more about Nordic American Tankers. While it will also providing details on a portfolio anchor like Seaspan as well as a dividend building block like Textainer.

TRANSCRIPT

Page 1: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Think You Missed The Boat on Retirement? Why Your Ship

Hasn’t Sailed Just Yet

Photo credit: Flickr/Woody Hibbard

Page 2: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

Many Americans simply are not saving enough for

retirement.

Page 3: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

That is being compounded by low interest rates…

Page 4: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

…which is keeping a lid on what savers are earning

on their retirement funds.

Page 5: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

This has many Americans feeling like they’ve

“missed the boat” and will never be able to retire.

Page 6: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

You don’t have to feel this way.

Page 7: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

Your ship hasn’t sailed just yet.

Page 8: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Are you worried about retirement?

In fact, now might be the perfect time to consider

buying a high yielding shipping stock.

Page 9: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Nordic American Tankers Ltd

• Owns 20 Suezmax crude oil vessels.

• Paid dividends for 67 straight quarters.

NYSE: NAT

Photo credit: Flickr/rabiem22

Page 10: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Nordic American Tanker

Key facts:• Incorporated in Bermuda in 1995.• Grown its fleet from 3 to 20 over that

timeframe.• Different from other tanker companies as it only

owns one type of vessel, Suezmax, which can carry one million barrels of oil.

Page 11: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Nordic American Tanker

Why Invest?• Leases its vessels to oil companies on the spot

market.• Exposure to the global oil trade.• Growth focused company that will acquire

additional vessels as conditions permit. • Pays out most of its cash flow to investors.• Current dividend yield 10.79%

Page 12: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Nordic American Tanker

Key risks• Spot market is both lucrative and volatile. • Quarterly dividend payments while consistently

paid have had fluctuated wildly by rate. • Potential geopolitical risks as it carried three

Russian cargos last year.• North American oil boom resulting in less

seaborne oil imports to America.

Page 13: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Nordic American Tanker

Bottom Line• Potential to earn strong dividend income during

economic boom times while still being paid when economies weaken.

• Nordic American Tanker can fuel extra income into a diversified portfolio.

Page 14: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Seaspan Corporation

• Owns 72 containership vessels.

• Grown its dividend each year since the financial crisis.

NYSE: SSW

Photo credit: Flickr/Phillip Capper

Page 15: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Seaspan Corporation

Key facts:• Formed in The Republic of the Marshall Islands

in 2005.• Grown its fleet from 10 to 72 over that

timeframe.• Leases its containerships under long-term

contracts to shipping companies.

Page 16: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Seaspan Corporation

Why Invest?• Long-term charters provide income security.• Average remaining charter length is five years.• Visible growth as 17 newbuilds to be delivered by

2016.• That stable growth enables Seaspan to pay a

steadily growing dividend to investors.• Current dividend yield 6.31%.

Page 17: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Seaspan Corporation

Key risks• Seaspan uses a lot of debt to build its ships.• Freight rates and charter rates can be volatile,

which could impact future contract renewals. • Seaspan was forced to cut its dividend during

the financial crisis in order to fund its newbuild program.

Page 18: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Seaspan Corporation

Bottom Line• Seaspan provides a solid dividend that is

expected to grow as newbuilds start earning income.

• Potential to be a dividend anchor in a diversified portfolio.

Page 19: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Textainer Group Holdings Limited

• Owns 2 million shipping containers.

• Pays a stable dividend with growth potential.

NYSE: TGH

Photo credit: Flickr/ShnapThat!

Page 20: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Textainer Group Holdings Limited

Key facts:• Textainer has been operating since 1979.• World’s largest lessor of intermodal containers.• Owns more than 2 million containers which are

leased to over 400 shipping lines. • Also the largest reseller of used containers,

selling more than 100,000 containers per year.

Page 21: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Textainer Group Holdings Limited

Why Invest?• Market leader with long-standing relationships

with customers. • Containers are essential to shipping industry

and can be leased for high rates of return. • Containers last 12 to 15 years and then can be

sold for 40%-50% of asset cost.• Current dividend yield 4.85%.

Page 22: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Textainer Group Holdings Limited

Key risks• Fragmented market leaves plenty of

competitors. • Outside of customer relationships there’s no

durable competitive advantage as containers are basically a commodity.

• Global market volatility can impact fleet utilization.

Page 23: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Textainer Group Holdings Limited

Bottom Line• Long-term leases help lessen the impact of the

volatile global market. • Makes Textainer a solid building block dividend

stock for any portfolio.

Page 24: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Bottom Line:

Shipping stocks could put you back on course for retirement.

Photo credit: Flickr/Bob Jenkins

Page 25: Think You Missed The Boat on Retirement? Why Your Ship Hasn’t Sailed Just Yet

Our special free report on one simple retirement strategy

you simply must learn.