SFL Corporation — 79 Quarters Of Consecutive Dividend Payments

SFL Corporation ($SFL) is a high-yield, shareholder-friendly business that prides itself on dividend growth.

In fact, the company slogan “Growth. Profits. Dividends.” is one of the first things you see when you visit the official SFL website.

And in today’s article, I want to look at what SFL Corporation does, and why it might be an interesting high-yield investment that’s also safer and more stable than many of its peers.

What Does SFL Corporation Do?

SFL Corporation is a diversified shipping company. They own: 13 tankers, 15 dry bulkers, 36 liners, 2 deep-water drilling rigs, and 7 car carriers.

What makes SFL unique is that it rents its fleet to other companies via long-term charter contracts. SFL has partnerships with recognizable firms like Volkswagen, Mærsk, Hapag-Lloyd, and Galp Energia.

As the SFL official website explains:

The Company has a substantial portfolio of owned and partially owned vessels employed on long term fixed charters with a weighted average tenor of close to 7 years. Stability in both charter revenues and operating costs supports the Company’s long term distribution capacity.

This leasing model has allowed SFL to pay 79 quarters of uninterrupted dividends. Or, a dividend payment every quarter for almost 20 years.

However, there have been dividend cuts and reductions along the way.

Which we’ll discuss…

SFL Corporation Fundamentals

The East India Company is one of the most famous business monopolies in history. Yet, it pales in comparison to the modern shipping industry. Today, more cargo is loaded onto ships every 45 seconds than what the East India Company traded in an entire year.

Shipping is the lifeblood of the modern economy. And its why we can buy (almost) anything, anywhere at a reasonable price.