Dividend Tycoon

Nordic American Tanker Shipping (NAT) is our first stock added to our recommended dividend stock list.  NAT has been added at $32.42 giving a current dividend rate of 10.6%.  While the tanker market is currently in horrible shape (tanker spot rates continue to remain in a state of collapse, over supply of tankers being added to the market, and huge OPEC cuts currently in the market).  We feel the bad news is all out and priced into the stock.  With oil prices continuing to increase OPEC shouldn’t cut any more oil supplies, we feel the tanker market will start to improve in the next 12 months and removal of the single hull tankers in 2010 and an improving economy will be the drivers of this.  With little to no long term debt, NAT has one of the lowest cash break-even levels in the business at a break-even level of less than $10,000 in costs per day per ship.

Dividend Tycoon is your tool to finding some of the best dividend paying stocks available.  Dividend paying stocks won’t make you instantly rich, it’s doubtful any of them will be the next Microsoft, but they will give you more than just normal stocks capital gains, they also give you incoming cash flow.

Capital gains are a great way to make money in an up market, but in the market we have had over the past year, almost all companies have created negative capital gains.  If you had purchased Chico’s (CHS) two years ago at $27.25 per share your stock would currently be trading at $7.25 per share.

Companies paying dividends can have the same negative capital gains as companies not paying dividends, but dividend payers also have the added advantage of cash flow.  If you had purchased Nordic American Tanker Shipping (NAT) two years ago at $44 per share, it would currently be worth $33 per share.  But during that time you would also have gotten cash flow of $8.11 per share.