SFL Corporation: High Yield Protected By Strong Backlog, But Upside Is Priced In
SFL Corporation has improved its counterparty risk profile and is positioned to release capital by selling oil tankers. At $12.57, SFL offers a 7.0% dividend yield, but this may not cover financing costs for new vessels and reinvestment needs. My weighted target is $11.37, with a base value of $11.73; I recommend Hold unless shares drop to $10.50 or below.