Ship Finance International: Stock Decline Offers High-Yielding Opportunity

Recently, ship leasing firm Ship Finance International (SFL) has performed quite poorly in the market, with shares currently trading at $10.96. This is a fairly significant decline from its high of $15.98 reached back in January 2018. As everyone reading this likely knows, the price performance of pretty much everything has been quite poor lately. However, Ship Finance has likely been negatively impacted by a few concerns that are greatly overblown. This could create an opportunity for investors as the company as a whole is quite strong and due to the stock's price decline boasts an incredibly high 13.30% dividend yield.
Explaining The Poor Stock Performance As already mentioned, at a current price of $10.96, shares of Ship Finance International have fallen 21.15% from the $13.90 closing price that the company's shares traded at on September 29.
The decline in the market as a whole was certainly responsible for part of the weakness in Ship Finance's stock price. As we can see here, the S&P 500 is down 14.53% since October 3.
As we can also clearly see, Ship Finance International is down much more than the S&P 500. One of the reasons for the excess decline is likely fears over the impact that a trade war between the United States and China would have on shipping companies. This argument certainly appears to make sense on the surface as the volume of trade that takes place between the United States and China is one of the largest bilateral trade... Read more