Industry With High Dividend Yields Is Booming
The stock market is down so far in 2026.
But one industry is really taking off, especially in the last few weeks.
Shipping, especially maritime shipping, has been on a tear.
Over the past 6 months, maritime shipping stocks are up almost 30%.
The S&P 500 is only up 4%, with most of those gains last fall.
What’s driving the stock gains in maritime shipping?
Conflict in the Middle East is driving up shipping costs.
The Strait of Hormuz is a major shipping lane for global trade, and it’s currently shut down because of the fighting in Iran.
CNBC has a great article discussing the importance of the Strait of Hormuz.
Well, if shipping can’t get through, then why are shipping stocks doing so well?
It’s simple supply and demand.
Global trade, especially oil, still needs to flow, regardless of what’s happening in certain regions of the world.
And some shipping companies are avoiding the Middle East entirely and must go around all of Africa to reach their destinations.
Ships can only go so fast, which means the supply for shipping drops as it takes longer for products to get to where they need to go.
Lower supply means shipping rates rise, which means shipping companies are making a lot more money.
And these shipping companies are raking it in.
Quick side note: shipping companies don’t pay stable dividends. Every quarter the dividend amount changes. So if you need a stable, predictable dividend, then these companies aren’t for you.
First up is Frontline PLC (ticker: FRO), one of the largest shipping companies in the world.
Frontline operates tankers to transport oil to markets everywhere.
Its stock price is up over 65% so far in 2026, yet it hasn’t hurt the dividend yield, which currently sits at 5%.
Frontline is a cash flow machine, generating over $500 million in free cash flow in 2025.
And with dividends only accounting for about $240 million, Frontline’s dividend payout ratio is only 43%.
Frontline’s next dividend payment of $1.03, one of the highest in its history, is just around the corner.
You need to own shares in Frontline by March 11 (Wednesday) to get the dividend.
DHT Holdings (ticker: DHT) is a shipping company exclusively operating VLCCs (very large crude carriers) to transport oil.
VLCCs carry between 200,000 and 300,000 tons of crude oil.
DHT’s dividend yield is just over 5.3%, but we just missed its last payment in February.
However, don’t feel like you’re missing out.
DHT’s next payment will be in May.
And the company’s industry-leading 42% profit margin makes DHT’s dividend well worth the wait.
Okeanis Eco Tankers (ticker: ECO) is on the smaller side, but it shouldn’t be overlooked.
Okeanis is a Greek company trading on the New York Stock Exchange (NYSE).
The company only owns 16 tankers, but two more will be delivered soon.
And its expansion is coming at the perfect time.
Okeanis’s return on equity (ROE) of 27% is one of the highest in the industry.
Plus, its 7% dividend yield is the highest on the list.
Shipping is a really hot industry right now.
And if conflict in the Middle East continues, these shipping companies (and their dividends) are going to skyrocket.
Do you own any shipping companies paying dividends?
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Stocks To Buy?, Dividend Yield
