Frontline (NYSE:FRO) is the world’s largest tanker company. They ship oil and other bulk as well as raw materials. China is a large driver of these commodities, which can send the stock higher.
The stock ends to follow the Baltic Dry Index (see below), which tracks shipping rates. The Baltic Dry Index is at 2400, almost triple from its bottom, whereas Frontline is trading only dollars away from its 52 week low. Though the index has taken a fall from it’s most recent high near 3500, it’s sure to go higher with the rest of the economy.
Frontline is known for its large dividend payout. Right now the dividend is $0.25 per share every quarter – a healthy 4.5% yield. The company has been known to raise its dividend up to $3.00/share for the quarter during thriving economies. That’s 12 times the current yield, which is an enormous 54% at these prices.
It may take some time for Frontline to raise its dividend back to past levels, but the stock has some huge upside as well. It’s trading at $22 while the 52 week high is over $54. The economy is recovering which makes Frontline a great long term buy.
The stock ends to follow the Baltic Dry Index (see below), which tracks shipping rates. The Baltic Dry Index is at 2400, almost triple from its bottom, whereas Frontline is trading only dollars away from its 52 week low. Though the index has taken a fall from it’s most recent high near 3500, it’s sure to go higher with the rest of the economy.
Frontline is known for its large dividend payout. Right now the dividend is $0.25 per share every quarter – a healthy 4.5% yield. The company has been known to raise its dividend up to $3.00/share for the quarter during thriving economies. That’s 12 times the current yield, which is an enormous 54% at these prices.
It may take some time for Frontline to raise its dividend back to past levels, but the stock has some huge upside as well. It’s trading at $22 while the 52 week high is over $54. The economy is recovering which makes Frontline a great long term buy.
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