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Global Ship Lease (GSL) Cheers Investors With 50% Dividend Hike

Driven by the gradual uptick in economic activities, Global Ship Lease GSL announced a 50% hike in its quarterly dividend, taking the total to 37.5 cents per share (annualized $1.50). The increased dividend will be effective next year in the March quarter.

The upped dividend highlights Global Ship Lease’s commitment to create shareholder value. Following the 50% hike, the dividend amount jumped more than thrice the amount declared by GSL in January 2021.

Apart from announcing an increase in its quarterly payout, Global Ship Lease, currently carrying a Zacks Rank #3 (Hold), also announced charter agreements for Eco 9,115 TEU Al Khor and Maira XL, two of GSL’s most valuable and in-demand vessels. The five-year charters were announced with a leading liner operator. The new charters for the vessels will begin in mid-2022 following the conclusion of their current charters.

The concerned vessels currently earn $31,650 and $34,000 per day, respectively. Following the new charters, they are anticipated to generate adjusted EBITDA (on an aggregate basis) of roughly $206 million over the five-year firm period. The new charter agreements pertaining to the two vessels align with Global Ship Lease’s efforts to tap the promising charter market.

Key Picks

Here are some better-ranked stocks within the broader Transportation sector:

Schneider National SNDR currently sports a Zacks Rank #1 (Strong Buy). SNDR has a stellar surprise history as its earnings outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Schneider National have rallied more than 23% so far this year. A strong performance is aiding SNDR in the Intermodal and Logistics units. The Intermodal segment is benefiting from yield management and increased volumes. The Logistics unit is thriving on the back of favorable market conditions and other factors. SNDR anticipates the improved demand environment to sustain through 2021.

Expeditors International of Washington EXPD sports a Zacks Rank of 1 at present. EXPD’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 29.1%.

Shares of Expeditors have appreciated nearly 34% so far this year. EXPD is being aided by increased airfreight revenues in this coronavirus-ravaged scenario. Airfreight Services revenues soared approximately 54% year over year in the first nine months of 2021. We are also encouraged by EXPDs' measures to reward its shareholders.

Landstar System LSTR carries a Zacks Rank #2 (Buy) at present. LSTR’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 11.4%.

Shares of Landstar have gained more than 29% so far this year. LSTR is being aided by an improved freight scenario, courtesy of the uptick in economic activities in the United States. LSTR’s truck transportation unit, which contributes to the bulk of its total revenues, is benefiting from strong demand in the van truckload business.


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Global Ship Lease, Inc. (GSL): Free Stock Analysis Report

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