Why I Like the International Shipping Industry (NM)

Since September 2010 Navios Maritime Holdings (NM) has broken even at a 0% return.  Meanwhile, the S&P 500 has an unrealized gain of 20%.  That's quite the underperformance.

Other International Shipping Stock Returns if invested beginning of September 2010:

• Eagle Bulk Shipping (EGLE) -20%
• Genco Shipping and Trading (GNK) -22%
• Excel Maritime Carriers (EXM) -12%
• Dryships (DRYS) 18%

As you can see, the international shipping industry has suffered compared to the S&P 500.

 I think any of these companies would be worth researching, but I especially like Navios Maritime Holdings (NM).  NM has a dividend of $.06 each quarter or a 4.25% yearly dividend yield.  That's a big reason why I like NM long-term.  Even if the international shipping industry continues to not perform you still are receiving a return.  However, this does not give you downside protection.  NM could always remove their dividend or the stock price could always fall more.  If you decide to invest in NM, make sure you are staying current on NM prospects.  Keep in mind that the international shipping industry is ultra competitive, which doesn't give the shipping companies a lot of control on price.

If you buy make 4 purchase installments to protect against price fluctuations AND make sure you remain diversified after your investment.

For the data used in this article:

morningstar.com


finance.yahoo.com