Safe Bulkers: Pair The Common With The 7.7%-Yielding Preferreds

Safe Bulkers continues strong operations and prudent fleet renewal, but the common stock lacks a clear margin of safety at current levels. Recent vessel sales above book value support higher NAV estimates, yet the stock already reflects some hidden fleet value. SB's short charter book enables upside if rates stay high but exposes downside if rates fall. Meanwhile, the dividend yield is still uncompetitive. A mixed allocation of SB common and preferreds offers a more balanced risk/reward, with preferreds providing a reliable 7.7% yield. When I covered Safe Bulkers ( SB ) in April, I argued that the business was doing almost everything right, but the stock had already enjoyed its easy re-rating. It has gained another 5% or so since then. Operations remain