The wars in Iran and Ukraine have pushed shipping availability and prices to much higher levels. The SonicShares Global Shipping ETF (BOAT) has gained 30% since July 1.
While I expect shipping rates to stay elevated as the conflict with Iran continues, the timing of buying shipping stock is counterintuitive. The companies pay variable dividends, typically paying out most of the free cash flows they earned in the quarter. Dividend amounts can swing wildly.
For example, here are the quarterly dividends paid by TORM. Plc (TRMD) for the last five years:
2026 (YTD + declared)
| Ex-dividend | Pay date | Amount |
|---|---|---|
| Sep 10, 2026 | Sep 24, 2026 | $2.40 (declared; upcoming) |
| May 28, 2026 | Jun 11, 2026 | $0.70 |
| Mar 12, 2026 | Mar 25, 2026 | $0.70 |
2025 (YTD + declared)
| Ex-dividend | Pay date | Amount |
|---|---|---|
| Nov 20, 2025 | Dec 3, 2025 | $0.62 |
| Aug 22, 2025 | Sep 3, 2025 | $0.40 |
| May 22, 2025 | Jun 4, 2025 | $0.40 |
| Mar 20, 2025 | Apr 2, 2025 | $0.60 |
2025 total: $2.02
2024 (YTD + declared)
| Ex-dividend | Pay date | Amount |
|---|---|---|
| Nov 21, 2024 | Dec 4, 2024 | $1.20 |
| Aug 29, 2024 | Sep 11, 2024 | $1.80 |
| May 21, 2024 | Jun 4, 2024 | $1.50 |
| Apr 15, 2024 | Apr 24, 2024 | $1.36 (additional/interim) |
2024 total: $5.86
2023 (YTD + declared)
| Ex-dividend | Pay date | Amount |
|---|---|---|
| Nov 21, 2023 | Dec 5, 2023 | $1.46 |
| Aug 28, 2023 | Sep 12, 2023 | $1.50 |
| May 22, 2023 | Jun 6, 2023 | $1.46 |
| Mar 24, 2023 | Apr 5, 2023 | $2.59 |
2023 total: $7.01
2022 (YTD + declared)
| Ex-dividend | Pay date | Amount |
|---|---|---|
| Nov 22, 2022 | Dec 8, 2022 | $1.46 |
| Aug 31, 2022 | Sep 16, 2022 | $0.58 |
2022 total: $2.04
Investors tend to get excited and buy shares when a big dividend is announced, like TRMD’s $2.40 per share for the 2026 third quarter. The share price is now in the low $30s, as it was when TRMD paid big dividends in 2024. Then the payouts dropped, and TRMD traded in the mid-teens for much of 2025. To be successful with most shipping stocks, you need to buy shares when dividends are low and yields are unattractive. That’s a hard path to follow.
For shipping exposure, I instead recommend SFL Corporation Ltd (SFL) to my subscribers. SFL operates a different type of business. They own a diversified fleet of vessels, which they lease out on long-term contracts. As a result, SFL generates steady revenue and profits that allow it to pay more stable dividends. The company has paid out over $3 billion, with dividends declared for 90 straight quarters.
In August 2025, SFL was forced to cut its dividend because the Hercules, a jack-up drill rig that earns over $500,000 per day, came off lease. The quarterly dividend dropped from $0.27 to $0.20 . Earlier this year, the company announced a new contract for Hercules that will start in early 2027.
SFL has paid a $0.22 dividend for the last two quarters. I expect it to return to $0.27 (or higher) next year. The forward yield for SFL using that dividend is 8.7%. Look for share price appreciation as it announces higher dividends.
Portions of this article were written with the assistance of a large language model (LLM). The article has been vetted and edited by the Investors Alley editorial team. Tim Plaehn wrote the investment analysis.
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