(KBHM) Shipowner John Fredriksen has a reputation for being a large believer in dividend payouts. Golar LNG (owned 45.80% by Fredriksen), said in their Q4 report, which was released on Tuesday, that they have a bright view of the LNG market and that a "a large part of the companys market value will be paid back to shareholders through dividends..." These payouts are said to be given over the next 3-5 years.
Although the tentative dividend plan impressed analysts, profits were lower than expected. Q4 profits were reported at $17.5m versus expected $25m. However, Q4 2011 profits were reported at $5m. Golar LNG (ticker: GOL) stock rose over 200% in 2011.
Fredriksen's track record for delivering dividends is outstanding. His known and proven strategy consits of paying out profits to shareholders (as he owns large stakes himself), and for debt repayments, consolidation, investments and expansion, he goes to the equity and debt markets to raise capital. Buyers beware; never chase profit (200% increase in 2011), but Fredriksen has proved, time and time again, he has an instinct for timing the market not many others can compete with.
