Going to the commodities well one more time...
Diana Shipping (DSX) is a dry bulk (or metals and grains) shipper, a sector that has been getting a lot of attention as day rates for leasing ships are at an all-time high. Both DSX and main competitor DryShips have had incredible runs since mid-January. DryShips is a lot cheaper, with a forward P/E of 6.5 as compared to Diana's 13. DryShips also has superior historical price appreciation (though both stocks are nearly identical for the past 6 months). So why buy DSX over DRYS? Diana's dividend yield is nearly 10%, while DryShips' is under 1%. In other words, DryShips' stock is levered to shipping day rates; Diana's stock is levered to its dividend. I'll happily choose the latter (you know by now I'm a sucker for big dividends).
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Fording Canadian Coal (FDG) 11.91%
Dominion Resources Black Warrior Trust (DOM) 11.43%
Southern Copper (PCU) 10.10%
Google (GOOG) 6.05%
Goldman Sachs (GS) 5.89%
Capstone Turbine (CPST) 5.53%
Apple (AAPL) 5.38%
Tidewater (TDW) 4.91%
Terra Nitrogen (TNH) 4.74%
Foster Wheeler (FWLT) 4.49%
Apache (APA) 4.29%
Frontline (FRO) 3.93%
American Capital Strategies (ACAS) 3.65%
Companhia Siderurgica Nacional (SID) 3.57%
NVIDIA (NVDA) 3.39%
Tesoro (TSO) 2.83%
Diana Shipping (DSX) 2.81%
MEMC Electronic Materials (WFR) 2.80%
Ace Limited (ACE) 2.19%
