A High-Yield Shipping Stock That Doesn't Suck

“Market Bites,” a short Sunday email that highlights unique stocks and investing ideas in 150 words or less.

Today’s topic, AP Moller Maersk.

Most shipping stocks are value traps. Owners issue massive blocks of new stock, diluting existing shares. Dividends get slashed. And the industry is cyclical.

AP Moller Maersk ($AMKBY) stands apart.

Sea freight carries roughly 80–90% of world trade and Maersk is the world’s 2nd-largest container shipping company. It operates in over 130 different countries and territories, including landlocked nations like Paraguay.

Maersk is still cyclical, with dividends dependent on global trade, but management tends to be financially disciplined and shareholder friendly.

This has resulted in the stock delivering a 10-year average annual total return of 14.43%.

The stock also returned over 120% purely from dividend payments during this time.

When the shipping sector is in turmoil, Maersk can be a fantastic long-term opportunity that averages 10%+ annually in distributions alone.

Just remember, Maersk is cyclical and its payouts fluctuate from year to year.

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.