This is Why I Own Euronav

by | May 7, 2020 | General | 0 comments

Euronav, an oil tanker company, just announced fantastic quarterly numbers. No surprise. In June, it will pay a dividend of $1.1 per share. This is more than 10 percent dividend yield for the quarter. So Euronav is my chicken laying eggs.

Then, I can take that money and invest it in other stocks that I featured in the How to Profit from the Coronavirus Recession, and still keep the chicken. In Q2, the dividend will probably be even larger.

If I can do it 3 or 4 times, I could get 100 percent of my investment through dividends and still keep the stock. And if the stock price goes up because investors bother to care, well then, this will be extra.

In the meantime, I don’t mind keeping the chicken just for the eggs. While the traders can argue from day to day how many eggs, if any, the chicken will lay, I will just focus on collecting the eggs no matter how big or small they are.

Disclosure: Long Euronav

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About Mariusz Skonieczny

Mariusz Skonieczny is the founder of Classic Value Investors.