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Golden Ocean Group: Splashing Cash On Big Dividends Risks Leaving A Severe Hangover

Jan. 04, 2022 7:35 AM ETGolden Ocean Group Limited (GOGL)48 Comments
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  • After years of lackluster dividends, Golden Ocean Group sent them surging during 2021 as they enjoyed booming operating conditions.
  • Their operating cash flow during the first nine months of 2021 already approximately doubled any of their previous full-year results during 2018-2020.
  • Whilst splashing their cash windfall on big dividends and acquisitions is not necessarily bad, the lack of deleveraging leaves them vulnerable.
  • Outside of these booming operating conditions, their leverage is very high and thus they face a severe hangover when these booming operating conditions subside.
  • Despite this bearish tone, I nevertheless still believe that a neutral rating is appropriate given the unpredictable nature of their industry.

erasing debt, hand written word on blackboard being erased concept

sebastianosecondi/iStock via Getty Images


After years of lackluster dividends that were suspended multiple times, Golden Ocean Group (NASDAQ:GOGL) sent their dividends surging as they enjoyed the booming operating conditions of 2021, which now sees their yield at a

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I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

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