Frontline, an oil tanker shipping company, will pay a regular quarterly dividend of $2.50 on December 21 to holders as of Tuesday, December 5. The dividend will be taxed in part as earning dividend, and in part as return of capital dividend. That’s 6.6% of the share price of $38.060, or a 26% 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 ~$1.50/share earning dividend, and ~$1/share return of capital dividend. Frontline benefited immensly from the huge rise tanker charter rates over the last few years, with a 34 percent top line growth this quarter, thus paying Quarterly dividends between $1.50/share and $5/share. Frontline was heading lower this week following a weaker than expected Q4 forecast on one-time repair costs. Profit from the dip.

FRO quote

This entry was posted on Friday, December 1st, 2006 at 12:26 am 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.