High-Dividend Stock Yields 8%, On Qualified Dividends, Goes Ex-Dividend Soon

Do you own any shipping stocks? We've long been fans of certain shipping stocks due to their attractive yields, good dividend coverage, and long-term contracts. One of the granddaddies of the long-term contract business model is Seaspan Corp. (SSW), which has grown to be the largest independent containership owner/manager in the world. It has an average of seven years remaining on its long-term charters, which represent 90% of its revenue.
To say that SSW has had its ups and downs over the past few years would be an understatement. Take a look at these quarterly growth figures (you better hold onto the railing, though, you might get a wee bit seasick):

SSW's price also has gone into the deep end, although it came back a bit in December 2017, rising from ~$5.75 to $7.15 in January, a 24% surge, but still very far below its mid to high teens prices in 2015-2016:

Now that we've made you a bit green about the gills, with SSW's common shares' tale of woe, let's get to the brighter side of this story - its preferred shares.
Management has used a variety of different funding vehicles, including several preferred series over the past few years, and more recently, baby bonds, as it sought alternative funding sources to fuel its growth. As you can imagine, it takes a lot of capital to build container ships.
Preferred Shares: There are currently four preferred series on the market - SSW-H, SSW-G, SSW-D, and SSW-E.
They all yield over... Read more

Older articles featuring SSW: