7 High Yield Trades On 2 High Dividend Stocks

In two of our recent articles, we covered Seaspan Corp. (SSW) and Triton International (TRTN). Both of these stocks are in different segments of the shipping container business - TRTN is the world's biggest lessor of shipping containers, and SSW is the largest independent containership owner/manager in the world.
But that's where the similarities end.
TRTN took off like a speed boat in 2017, gaining 79% over the past year, whereas SSW took a dive into the tugboat category and fell -25%. However, look closely at their recent performance - SSW is outperforming TRTN over the past month, quarter, and year-to-date, thanks to some recent analyst upgrades:

SSW's earnings over the past four quarters were challenged by weak market conditions and the Hanjin bankruptcy, which led to management cutting the quarterly dividend from $.375 to $.125.

Although painful to common shareholders, the dividend cut shored up SSW's common dividend coverage, bringing it to a very strong 5.2x:
This eventually helped to garner SSW analyst upgrades, most notably a price target of $20.00 from Jefferies in December '17, and an upgrade from Seaport Global Securities this past week. This was quite a shot in the arm for the price of the common shares - they're up 13% in 2018.
Even with that impressive rise, SSW is still 12% below the average price target of $8.56:

TRTN, on the other hand, has benefited greatly from a merger with TAL, in which it... Read more

Older articles featuring SSW: