Costamare Inc. Declares Quarterly Dividend on Its Preferred and Common Stock
Costamare Inc. (CMRE) Declares Dividends on Preferred and Common Stock
The declaration of dividends by Costamare Inc. across its preferred and common stock is indicative of the company's current financial health and liquidity position. The ability to pay out dividends consistently suggests a stable cash flow, which is an attractive indicator for investors seeking regular income. The payment amounts, particularly for preferred stock, are relatively high, reflecting the company's commitment to these investors.
Analyzing the dividend yields based on the current stock prices could provide insights into the company's valuation. High dividend yields might suggest that the stock is undervalued, or it could indicate that investors require a higher return due to perceived risks associated with the company. The payment on preferred stocks, which are higher in the capital structure than common stock, also underscores the company's prioritization of fulfilling obligations to preferred shareholders, who typically have fixed dividend rights.
The dividends' sustainability is contingent upon several factors, including earnings, financial condition and the ability to secure debt and equity financing. Given the company's dependence on global economic conditions and the shipping industry's cyclical nature, investors must monitor these factors closely.
Costamare Inc.'s dividend announcement may influence the stock's attractiveness to different segments of investors. The preferred stocks, with their higher dividends, are likely to appeal to income-focused investors, especially in an environment where fixed-income yields might be low. However, the common stock's dividend, while lower, represents a broader confidence in the company's ability to generate profits and share them with common shareholders.
It is also essential to consider the shipping industry's outlook, as it is highly sensitive to global trade volumes and economic activity. Any fluctuations in these areas could impact Costamare's future dividend payments and overall financial performance. The company's mention of restrictive covenants in its debt instruments is a critical aspect for investors to consider, as it may limit the company's operational flexibility and impact its growth strategy.
Investors should also evaluate the company's past dividend history and compare it to industry peers to gauge relative performance. An increase or decrease in dividend amounts over time can signal changes in the company's operational efficiency, market position, or financial strategy.
The reference to global economic conditions in Costamare Inc.'s dividend declaration highlights the interconnectedness of macroeconomic factors with corporate performance. The shipping industry, being a barometer for global trade, is directly affected by changes in economic growth, trade policies and international relations. These factors can influence freight rates, ship valuations and operating costs, which in turn affect the company's profitability and ability to distribute dividends.
Furthermore, the company's growth strategy, which involves obtaining debt and equity financing, is sensitive to interest rate trends and investor sentiment. In a rising interest rate environment, the cost of debt increases, potentially squeezing margins and impacting dividend payouts. Conversely, in a low-interest-rate environment, the company might have more favorable conditions for financing its growth initiatives.
The company's financial condition and cash requirements are also critical in determining dividend policy. A robust balance sheet with low leverage ratios can provide the financial flexibility needed to navigate through economic downturns without sacrificing dividend payments.
01/02/2024 - 05:55 AM
MONACO, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Costamare Inc. (the “Company”) (NYSE: CMRE) has declared cash dividends of US $0.47 6563 per share on its 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (the “Series B Preferred Stock”) (NYSE: CMRE PR B), US $0.53 1250 per share on its 8.50% Series C Cumulative Redeemable Perpetual Preferred Stock (the “Series C Preferred Stock”) (NYSE: CMRE PR C), US $0.54 6875 per share on its 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock (the “Series D Preferred Stock”) (NYSE: CMRE PR D) and US $0.55 4688 per share on its 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock (the “Series E Preferred Stock”) (NYSE: CMRE PR E). The dividend for the Series B Preferred Stock, the Series C Preferred Stock, the Series D Preferred Stock and the Series E Preferred Stock is for the period from October 15, 2023, to January 14, 2024. The dividend will be paid on January 16, 2024 to all holders of record as of January 12, 2024 of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock.
The Company has also declared a quarterly dividend on its common stock of US $0.11 5 per share for the quarter ended December 31, 2023. The dividend for the common stock is payable on February 7, 2024, to holders of record of common stock as of January 22, 2024.
The declaration of a dividend is subject to the discretion of the Board of Directors of the Company, and accordingly will depend on, among other things, the Company’s earnings, financial condition and cash requirements and availability, the Company’s ability to obtain debt and equity financing on acceptable terms as contemplated by the Company’s growth strategy, the restrictive covenants in the Company’s existing and future debt instruments and global economic conditions.
About Costamare Inc.
Costamare Inc. is one of the world’s leading owners and providers of containerships and dry bulk vessels for charter. The Company has 50 years of history in the international shipping industry and a fleet of 68 containerships, with a total capacity of approximately 513,000 TEU and 45 dry bulk vessels with a total capacity of approximately 2,749,000 DWT (including two vessels that we have agreed to sell). The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions. The Company participates in a leasing business that provides financing to third-party owners. The Company’s common stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”, respectively.
Forward-Looking Statements
This press release contains “forward-looking statements”. In some cases, you can identify these statements by forward-looking words such as “believe”, “intend”, “anticipate”, “estimate”, “project”, “forecast”, “plan”, “potential”, “may”, “should”, “could” and “expect” and similar expressions. These statements are not historical facts but instead represent only the Company’s belief regarding future results, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors”.
Company Contacts:
Costamare Inc., Monaco
What dividends has Costamare Inc. (CMRE) declared?
Costamare Inc. (CMRE) has declared cash dividends for its 7.625% Series B, 8.50% Series C, 8.75% Series D, and 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock, as well as a quarterly dividend on its common stock.
How much are the dividends for Costamare Inc. (CMRE) preferred stocks?
The dividends for the Series B, C, D, and E Preferred Stocks are US $0.476563, US $0.531250, US $0.546875, and US $0.554688 per share, respectively.
When will the dividends be paid for Costamare Inc. (CMRE) preferred stocks?
The dividends for the preferred stocks will be paid on January 16, 2024, to all holders of record as of January 12, 2024.
What is the quarterly dividend for Costamare Inc. (CMRE) common stock?
The quarterly dividend for the common stock is US $0.115 per share for the quarter ended December 31, 2023.
When will the dividend for Costamare Inc. (CMRE) common stock be payable?
The dividend for the common stock is payable on February 7, 2024, to holders of record as of January 22, 2024.
What factors determine the declaration of dividends by Costamare Inc. (CMRE)?
The declaration of dividends is subject to the discretion of the Board of Directors and depends on factors such as the company's earnings, financial condition, cash requirements and availability, ability to obtain financing, and global economic conditions.
