So I am writing this post partially to inform people about a potentially great buy and partially for feedback as to whether I'm missing something. The oil tanker (meaning they store and ship oil) Euronav is currently trading for near the price that they were in Q1 of 2019, even thought their profits are about 10 times higher Q1 of 2020. They have announced a dividend for Q1 of 2020 of $1.10, which would make their dividend yield 33%(!!!) if they continued it throughout the year. While they almost undoubtedly won't continue to have the massive increase in earnings once the oil market normalizes, they were profitable before and are very profitable for the time being. They also have very little debt and a relatively new fleet compared to the rest of the industry.
They seem committed to giving back capital to shareholders, and although their headquartering in Belgium means that you may have international taxes withheld from dividend payouts they are currently offering an absurdly large yield.
I have put some money in already, and plan to invest more, but I'd also be interested to see what the community thought here. Their current position seems almost too good to be true, which makes me worried that it is.
Submitted May 15, 2020 at 07:46PM by Spezia-ShwiffMMA https://ift.tt/2T8roOT
