Douglas E. Johnston
Long/short equity, hedge fund manager

Teekay Tankers: A Speculative Investment Worth Inspecting

Let me start by emphatically stating that Teekay Tankers (NYSE:TNK) is a speculative investment. It is not meant for income investors or others who cannot or do not want to risk principal. That said, TNK does provide a dividend but, in contrast to most dividend stocks, it varies from quarter to quarter based on the so called "cash flow available for distribution." That is a fancy way of saying it pretty much pays out everything it earns. Thus, even in the best of times, the dividend would change from quarter to quarter, which might make it unsuitable for income investors.

Okay, enough with the caveat emptors. Teekay Tankers is part of the Teekay family, which consists of Teekay...

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