SFL Still A Little Island Of Relative Calm In An Always-Volatile Shipping Industry

With a prudent management team, good access to capital, and healthy contract coverage, SFL Corporation (SFL) offers investors a bit of an oasis in a usually-turbulent shipping industry where sudden shifts in geopolitics or trade can lead to fast, bruising changes in rates that hammer shipping operators. While there will always be questions about this or that part of SFL’s portfolio, I think management has more than earned the benefit of the doubt and this remains a solid option for investors who prize income and are willing to accept higher risks to get it (SFL is well-run, not risk-free).

SFL shares are up about 15% from when I last wrote about the stock, but the market environment is no less turbulent. My total return expectations really haven’t changed much from then, but the dividend is now a bigger portion of that potential return and in the $14’s, I’d say the stock is more or less fairly valued.

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SFL Still A Little Island Of Relative Calm In An Always-Volatile Shipping Industry