FS KKR Capital posted stellar first-quarter results, announced a huge stock buyback and raised the dividend by three cents per share to $0.68. The second-quarter results are expected to come after the closing bell Monday.
Shareholders receive a 12.36% dividend. Jefferies has a $25 price target. The consensus target of $22.56 compares with Friday’s close at $22.00 a share.
Genco Shipping & Trading
This is another top shipping stock that looks poised to trade higher. Genco Shipping & Trading Ltd. (NYSE: GNK) engages in the ocean transportation of dry bulk cargoes worldwide. The company owns and operates dry bulk carrier vessels to transport iron ore, coal, grains, steel products and other dry bulk cargoes. It charters its vessels primarily to trading houses, including commodities traders, producers and government-owned entities.
Genco provides a full-service logistics solution to customers utilizing an in-house commercial operating platform, as it transports key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes.
The wholly owned, high-quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk), enabling it to carry a wide range of cargoes. It makes capital expenditures from time to time in connection with vessel acquisitions. As of April 12, 2022, the company’s fleet consisted of 17 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,635,000 deadweight tonnage and an average age of 10.1 years.
The company posted strong second-quarter results last week, with earnings and revenues that both came in ahead of Wall Street expectations. With port traffic starting to finally clear some, and supply chain issues improving, this may be the best long-term play of all these companies, certainly for the shipping names.
Genco Shipping & Trading stock comes with an 11.46% dividend. The $25 target price set by the Jefferies team is lower than the $27.46 consensus target. But the stock closed at $17.45 on Friday.
Needless to say, these aggressive investments are not suitable for conservative investors who have preservation of capital as their number one objective. With that noted, all these stocks have been hammered this year and are offering the best entry points (in most cases) since last year. With second-quarter earnings still to come for some of these stocks, it may make sense to buy patrial positions and see how the results come in.
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