This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Three Unloved Dividend-Paying Stocks

2. International Shipholding (ISH) provides marine transport services to commercial and government customers.

Dry-bulk shippers, such as Navios Maritime (NMM) and DryShips (DRYS), are comparable investments with worse merits. International Shipholding is TheStreet.com's top-ranked marine company due to its recent stock performance and record of consistent earnings growth. Over the past three years, International Shipholding has more than doubled profit annually, on average. The shares have fallen 22% over the past month, presenting contrarians with a buying opportunity.

Third-quarter net income stalled at $11 million, but earnings per share climbed marginally to $1.55. The company's net margin narrowed from 13% to 12% as growth in voyage expenses exceeded a 9% sales increase. Such deterioration is worrisome. Still, similarly sized marine rival Danaos (DAC) recorded a 41% profit drop, and Safe Bulkers (SB) notched a 43% decrease. All things considered, International Shipholding is faring well. Its 0.7 debt-to-equity ratio is less than the industry average, indicating conservative leverage.

At its current share price, the stock yields 7%, with a payout ratio of 40%. The stock is cheaper than that of the average marine company, based on all of our valuation measures. The shares trade below book value per share, even though the quarterly return on equity tagged 16%, beating the industry average and the S&P 500 Index. The PEG ratio, at 0.2, compares favorably to the marine industry average of 4.1. Shipping stocks are cyclically sensitive, but International Shipholding has a beta of 0.4, noticeably lower than those of competitors.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs