| The Yield Hunter Let's make some money and sleep well at night |
| Ocean Shipping and Transportation Securities |
Shipping Securities have become BIG yield plays in the last number of years because of their corporate structure. WE MUST understand the tax laws under which these companies operate. This is critical because to pay out the very high dividends (yields) the company must be exempted from Federal Income taxes Here is the basis of the tax advantage most of these companies have-- Section 883 of the Internal Revenue Code of 1986 states -- qualified income derived from International Operations of ships is excluded from gross income and exempt from U.S. Federal Income Taxes if a company engaged in the International operation of ships meets certain requirements. A key item is that the company must be incorporated in a country that grants like exemption to U.S. Corporations This requirement is KEY. Without the tax exemption the high dividends (high yields) WILL NOT be able to be paid. BELOW we note the tax status of the corporation next to the country of incorporation It is the intention of most of the companies listed below to pay out all--or most of their operating income in the form of dividends. Of course this can mean a very high dividend yield. Before investing in any of the corporations listed below be aware of the other key research items you need to check up on. 1--Ship 'day rates' for the type of ships owned by a company. Is the trend up or down? What is the forecasted demand 2--Economic conditions---i.e. fuel prices--i.e. the need for feed grains around the world 3--The amount of time any given ship will be in dry dock for maintenance---does a company have a large share of their fleet needing repairs that have previously been delayed? 4--the length of time the companies ships are chartered for and at what rates? Information Current as of 1/14/2008 NOTE---Form 20F is an annual report for certain foreign companies |
| Updated 8/14/2008 |
| Arlington Tankers ATB 19.65 11.3% Bermuda--Tax Exempt 10Q for Period End 6/30/2007 |
Diana Shipping DSX 24.61 9.3% Marshall Islands-Tax Exempt
20F for Period End 12/31/2007
20F for Period End 12/31/2007
| Double Hull Tankers DHT 10.35 14.2% Channel Islands--Tax Exempt 10Q for Period End 6/30/2007 |
Eagle Bulk Shipping EGLE 20.97 9.1% Marshall Islands--Tax Exempt
10Q for Period End 6/30/2007
10Q for Period End 6/30/2007
| Frontline LTD FRO 42.08 14.3 % Bermuda--Tax Exempt 20F for Period End 12/31/2006 |
| Genco Shipping and Trading GNK 36.90 6.4 % Bermuda--Tax Exempt 10Q for Period End 6/30/2007 |
| Excel Maritime Carriers EXM 30.29 2.6% Bermuda--Tax Exempt 20F for Period End 12/31/2007 |
Company Ticker Recent Price Recent Yield Country
| Knightsbridge Tankers VLCCF 25.78 8.7 % Bermuda--Tax Exempt 20F for Period End 12/31/2006 |
| Nordic America Tanker Shipping NAT 31.54 5.3 % Bermuda--Tax Exempt 10Q for Period End 6/30/2007 |
| Ship Finance INternational SFL 26.57 8.3 % Bermuda--Tax Exempt 20F for Period End 12/31/2007 |
| Top Tankers TOPT 5.83 N/A Marshall Islands--Tax Exempt 20F for Period End 12/30/2006 |
| Dryships DRYS 52.43 1.3% Channel Islands--Tax Exempt 10Q for Period End 6/30/2007 |
| Canadian IncomeTrusts Canadian Oil and Gas Trusts U.S Oil and Gas Trusts Shipping Stocks Master Limited Partnerships |