Public Companies and Unrealistic Shareholders – How to survive 50% yields

By Gary Wolfe, Partner, Seward & Kissel LLP

Perhaps the most amazing consequence of the recent precipitous drop in the drybulk markets and the related drop in the stock prices of the publicly traded drybulk companies has been the extraordinary yields at which the full and high dividend payout companies are now trading. As of this writing, Yahoo Finance shows one of the full dividend payout companies as trading at a 73% yield while one of the partial dividend companies is trading at “only” a 60% yield.

In this context, some investors have demanded assurances from the full and partial dividend payout companies that their dividends are “sacrosanct”. At the same time, when the prices of their shares have fallen as much as 90%, company managements have begun

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