Nordic American Tanker Stock Up 110% In 2026
While the broader stock market took a breather in the days following the U.S. midterm elections, they have surged back, with the Dow Jones Industrial Average above the level it was at on election day. The Nasdaq and S&P 500 have rebounded too but remain slightly lower then where they were on election day.
There are still some uncertainties though. The war in Iran continues and there are unknowns about whether the Democrat controlled Congress will tighten regulations on data center construction, energy use, and development costs that could undermine the red-hot AI infrastructure boom.
This is one of those periods where investors have to wait and see how it all plays out. The new session in Congress begins in early January.
Individual stocks have not entirely recovered of course, and the S&P 500 could trade rangebound for the remainder of the year, which means there are still a lot of excellent stocks out there trading at a discount.
One stock that was trading at its highest level in more than 15 years before the election and is home to a growing dividend is Nordic American Tanker Limited (NYSE:NAT). Near term crude prices may be down, but that doesn’t mean shipping costs have magically gone down or that there is peace in the Middle East.
Case in point. The last 10 spot voyage fixtures of the NAT tankers have an average duration of 60 days with a Time Charter Equivalent (TCE) of about $144,000 per day per vessel. The highest fixture is $347,000 per day and the lowest is $59,000 per day. (Source: “The Tanker Bonanza continues,” Nordic American Tankers, November 9, 2026.)
The company’s cash operating costs are less than $10,000 per day per ship. About 50% of its vessels are currently in the spot market. Suffice it to say, the company will be able to pay healthy dividends. Strong earnings should also help juice the company’s share price.
About Nordic American Tanker Limited
Bermuda-based Nordic American Tankers acquires and charters double-hull tankers. It currently operates a fleet of 16 Suezmax crude oil tankers, with a cargo lifting capacity of 1 million barrels of oil each. The majority of its vessels are in the spot market. It has two vessels slated for delivery in 2028. (Source: “Overview,” Nordic American Tankers Ltd, last accessed November 10, 2026.)
And the outlook for Nordic American Tanker remains bullish. Management said in early November that the “very strong market for our ships continue.” It is also entering into contracts at historically high levels.
What about lower crude prices? Some may think lower oil prices would be a headwind for Nordic America Tanker, but it’s actually the opposite; the lower the oil price, the higher oil consumption. And when it comes to tanker economics, the most important element is tone mile. The longer distance oil needs to be shipped, the more advantageous it is for Nordica American Tanker. (Source: “Very strong market continues,” Nordic American Tankers Ltd, November 3, 2026.)
The company’s main customers are the largest energy companies in the world, including Exxon, Shell, British Petroleum, Total and Equinor. These companies lease its ships on a regular basis and account for more than 50% of Nordic’s business.
In the present, very strong market, management adjusted its fleet by selling some of its older vessels, built in 2003, 2004 and 2005 at good prices. The recent transactions improve its financial flexibility.
Another Strong Quarter
Nordic American Tanker reported another strong quarter, operating in the best market it has seen in decades. It announced that TCE for its vessels came in at $63,000 per day per ship, that’s a 32% increase over the $47,600 per day in the previous quarter. (Source: “Report as per June 30, 2026 – The direction of NAT is unquestionably upwards – rates & values are up,” Nordic American Tanker Limited, August 27, 2026.)
Operating costs are below $10,000 per day, resulting in a substantial accumulation of cash, which now stands at $175 million. This helped it report a second quarter net profit of $68.3 million, a 47.5% increase over the $46.3 million recorded in the previous quarter.
Management noted that is was able to get three of its vessels though the Hormuz Strait. The three had been stuck in the Arabian Gulf since February 2026. Two of the ships are now trading internationally and one, built in 2003, was sold for $26 million.
Nordic American Announces 123th Consecutive Dividend
Dividends are an important part of who Nordic American Tanker is. In its financial results, it says that “whatever we do, dividends remain an important objective.” And they are.
Its policy is to declare quarterly dividends to shareholders, based on its net operating cash flow during the previous quarter. This results in a variable quarterly dividend.
In the third quarter, it raised its dividend payout 170% on an annual basis to $0.27 from $0.17 per share in the third quarter. It delivered a second quarter dividend of $0.22 per share and first quarter dividend of $0.17 per share.(Source: “Dividends,” Nordic American Tanker Limited, last accessed November 10, 2026.)
The current payout translates into an annual distribution of $1.08 per share, for a forward dividend yield of 16.6%.
NAT Stock Crushing Broader Market
What’s better than a reliably growing, ultra high yield dividend? One that’s tied to a stock that is doing exceptionally well. And NAT stock has been doing well since early 2022. It’s also done exceptionally well in 2026. On October 10 it hit a multi-year high of $8.80 per share. It has given up short term ground since then, but continues to trade up:
- 18% over the last six months
- 110% year to date
- 105% over the last 12 months
Big gains by any metric, but conservative Wall Street thinks Nordic American Tanker has what its takes to hit fresh 52-week highs over the coming quarters. Analyst’s have provided a 12-month share price target range of $8.50 to $10.00 per share. This points to potential gains of approximately 32% to 55%.
Chart courtesy of StockCharts.com
The Lowdown on Nordic American Tanker Ltd
Nordic American Tanker Ltd continues to be a great oil & gas midstream company that owns one of the largest fleets of Suezmax tankers in the world, with long-term contracts with major oil companies.
It has been selling off older vessels and expanding its fleet and, according to management, it expects 2026 to be its best year since it was first listed on the stock exchange in 1995. It also expects the tanker market to remain strong over the coming years.
This should allow Nordic American to continue delivering one of the best dividend policies in the midstream sector.
For information and education only; not investment, tax or legal advice. Yields and prices are as of the publication date.
