At HK$92 billion market cap, Orient Overseas Container Line (OOIL) is one of the world’s largest container shipping operators.
It runs over 120 vessels with a combined capacity of about one million TEU. Essentially, they’re in the business of moving stuff around the globe, and lots of it.
TEU is shipping lingo for twenty-foot equivalent units – basically how many standard containers they can haul.
It’s also part of the powerful Ocean Alliance with COSCO, CMA CGM and Evergreen shipping. This dominates the global container shipping market.
Today, shares are trading at just 4.8x earnings. That means, if you bought one share of OOIL, you could get your capital back in less than five years if it stays where they are.
But here’s the big one: Shares are now trading at 10% dividend yield. And the question for me: is its dividends secured?…
