UK bulker owner Taylor Maritime Investments (TMI) is returning more cash to shareholders in the form of a one-off dividend in strong markets. The special pay-out is at 3.22 US cents per share, the London-listed company said. This will equate to $10.6m, based on 330m outstanding shares. The latest move takes the total dividends declared since the initial public offering last May to 8.47 cents, representing a dividend yield on the initial issue price of 10%.

Chief executive Edward Buttery said: “The board’s approval of a special dividend reflects excess cash generation in what continues to be a historically strong market and we are delighted to be able to return this capital to shareholders in a timely manner.” An interim dividend of 1.75 cents was paid for the first quarter. And the shipowner had indicated in April that, following strong trading conditions, the board would consider an extraordinary dividend in early May.

The company believes handysize bulk carrier values will continue to rise as fleet growth turns negative. TMI said that demand for minor bulk cargoes at 2.2% is expected to continue to outpace fleet supply growth of 1.7% this year. The company’s net asset value at the end of March was $1.74 per share, an increase of 22% since 31 December and 78% since the IPO.

Average net charter rates for the 31 bulkers had increased to $19,200 per day by the middle of April, versus $18,600 at the end of March 2022. Buttery added: “We have created a differentiated shipping investment opportunity offering growth and attractive shareholder returns as well as effective recycling of capital.” He said: “This is in the context of our continued anticipation of two to three years of further strength in the market.”