Dynagas LNG Partners LPNYSE: DLNG

Often priced under $5 per share, penny stocks can appear attractive to investors seeking high-risk, high-reward opportunities. These stocks typically present companies with small market capitalizations and volatile trading patterns.

Since 2019, Dynagas LNG Partners has not distributed a dividend to its common shareholders, making the preferred shares a more appealing option. The company's strong financial performance, particularly in terms of cash flow, bodes well for preferred shareholders.

Dynagas (DLNG) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Dynagas LNG Partners LP (DLNG) Q4 2023 Earnings Call Transcript

ATHENS, Greece, March 21, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (NYSE: “DLNG”) (“Dynagas Partners” or the “Partnership”), an owner and operator of LNG carriers, today announced that it will release its financial results for the fourth quarter ended December 31, 2023, before market opens in New York on Thursday, March 28, 2024.

Dynagas LNG has three ships equipped with steam turbines, and the other three fitted with TFDE (triple fuel diesel-electric) propulsion. Five of the company's ships are ice class. The company has a $1.16 billion backlog. The average time charter duration is 7.2 years. DLNG has significantly reduced its debts over the last five years. The total debt/equity dropped from 218% in 2018 to 97.8% in 2024.

Penny stocks are generally defined as stocks that trade for less than $5 per share. Low-priced stocks appeal to investors who can wait for these stock prices to appreciate.

Dynagas LNG Partners has frustrated common unitholders by not paying dividends on its common units. The partnership's operating and financial performance remains strong, but all incoming cash is used to reduce debt, leaving common unitholders frustrated. The preferred shares of Dynagas offer a fixed 9% preferred dividend and currently yield 9.4% making them increasingly attractive to income investors.