Capital Product Partners LP
4/26 Open: $8.40
Market Cap: $590 million
Capital Product Partners LP (NASDAQ:CPLP) is one of those high-yield tanker stocks we have heard so much about in recent years — stocks that have crashed between 70% to 90% since 2007 peaks for the industry. CPLP specifically performs seaborne transportation of crude oil and refined petroleum products, edible oils and soft chemicals.
Business has been OK, but revenue has been stagnant and earnings have dried up as shipping rates have fallen and margins have been squeezed during the past few years. Still, the stock has paid dividends since 2007 and has paid 23.25 cents a share like clockwork. That adds up to an 11% yield based on current pricing. Of course, shares could continue to sink — and a dividend cut isn’t out of the question. But if the stock drifts sideways and just manages to tread water on its quarterly distributions, you’ll be nicely rewarded via dividends.
Just be warned that CPLP only trades about 200,000 shares daily, so it can jump around. Use a limit order when trading.