Is Diana Containerships' 15% Yield Too Much Good To Be True?
- Diana Containerships is a small-cap company operating in the containership industry, owning only 8 container vessels.
- Charter rates are historically low leading to weak financial results and a poor outlook for the next few years.
- Even though the company has slashed its dividend by 50% in 2013, it still offers a very attractive yield of 15%.
- However, its dividend does not seem sustainable over the long-term and for more risk-averse investors it should be avoided.