Frontline, an oil tanker shipping company, will pay a regular quarterly dividend of $1.50 on September 18 to holders as of Tuesday, August 29. That’s 3.4% of the share price of $43.890, or a 14% annual yield. Frontline will announce the tax treatment of this dividend shortly at http://www.frontline.bm/IR/tax_treatment.shtml, but it will likely be ~$1/share earning dividend, and ~$0.50/share return of capital dividend. Frontline benefited immensly from the huge rise tanker charter rates over the last few years, thus paying Quarterly dividends between $1.50/share and $5/share. Accelerated drydocking resulted in a small net income slips this quarter though.

This entry was posted on Saturday, August 26th, 2006 at 6:21 pm and is filed under Div Alert. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.