Ro Ro Ro Your Boat (Reprise): Höegh Autoliners $HOEGF
Probably Not a Value Trap
Referring to my initial writeup:
Ro Ro Ro Your Boat: Höegh Autoliners $HOEGF
Welcome back to the “Probably Not a Value Trap” series where I discuss businesses with a 10%+ dividend yield which I believe probably won’t get cut and why, but don’t come after me on Twitter if they do.
One of my founding subscribers asked me to dig a little deeper into this name. I can understand why, with the recent 10% selloff, it’s an incredible value. One of the more curious aspects of Höegh is their commitment to pay out 100% of cash flow as dividends. How will they manage fleet growth and debt retirement? And, with the current dividend yield, is it too good to be true?
It’s so good that I’m sticking it behind the paywall.
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