Monthly Dividend Stock In Focus: Himalaya Shipping

Published on March 18th, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: Himalaya Shipping

Himalaya Shipping Ltd. (HSHP) is a monthly dividend stock with a high yield.

This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Himalaya Shipping in greater detail.

Business Overview

Himalaya Shipping is a dry bulk shipping company incorporated in 2021 and focused on owning and operating a fleet of 12 modern Newcastlemax vessels used to transport iron ore and other major bulk commodities globally.

The fleet was delivered during 2023–2024 and consists of fuel-efficient, large-capacity ships designed for low-emission operation.

The company’s chartering strategy is to employ its vessels mainly on time charters that are indexed to Capesize freight rates, so daily earnings float with the market, typically with a minimum “floor” rate for downside protection and, in some cases, fixed-rate periods to lock in cash flow.

On February 28th, 2026, Himalaya Shipping reported its Q4 results for the period ending December 31st, 2025. Himalaya reported total revenues of $42.1 million, compared with $29.6 million in the prior year period.

Operating income was $26.0 million, up from $14.0 million year over year, reflecting higher time charter revenues. Net income was $13.5 million, or $0.29 per share, compared with $1.1 million and $0.02 per share in the prior year period.

EPS for 2025 was $0.38. We have applied an EPS power of $1.14 in our estimates.

Growth Prospects

Himalaya Shipping’s earnings are driven almost entirely by Newcastlemax/Capesize freight rates, which are among the most volatile in global shipping and can move sharply day to day based on iron ore demand, Chinese steel production, port congestion, weather, and vessel supply.

Because the fleet is employed mainly on index-linked time charters that pay a premium to the Baltic 5TC, the company has significant upside when rates rise, and management has at times converted index-linked charters into fixed-rate periods to lock in strong cash flow when markets are attractive.

In strong markets, this structure can produce very high earnings with little change in the underlying cost base. Note that growth does not come from traditional volume expansion, but from exposure to the freight cycle and capital allocation decisions.

The company’s strategy is to keep a small, modern, fuel-efficient fleet, return most excess cash to shareholders, and only pursue fleet expansion opportunistically when vessel prices are attractive rather than building scale.

Buying ships cheaply in weak markets or fixing charters at high rates can create substantial value, but overpaying for vessels late in the cycle or adding capacity ahead of a downturn can lock in years of weak returns.

The downside can be equally large. When freight rates fall below cash break-even levels, earnings can plunge quickly and turn negative despite the modern fleet and dividends can disappear.

Because the company only began operations recently and its vessels were delivered in 2023–2024, it has no long multi-cycle track record.

Future results will be dictated far more by daily freight rate movements than by incremental operational improvements, making long-term EPS growth inherently unpredictable.

Dividend & Valuation Analysis

Due to the nature in which Himalaya Shipping operates in, the company’s P/E can swing dramatically. Earnings move far more with freight rates than with any change in the business itself.

In strong markets the stock can look extremely cheap on strong earnings expectations, while in weak markets the multiple can spike or become meaningless as profits fall or turn negative.

Today, the stock trades at 11.3x our EPS power, which is already quite speculative. We have set our fair multiple at 11x. We expect the dividend yield to remain elevated during most of the market cycle.

A declining P/E multiple to our fair value estimate could reduce annual returns by -0.5% over the next five years.

In addition, HSHP currently yields 8.9%. Including no expected EPS growth, total returns are estimated at 7.2% per year over the next five years.

Final Thoughts

Himalaya Shipping offers efficient exposure to the dry bulk cycle and can generate very large cash distributions in strong markets, but it is poorly suited for long-term compounding or reliable dividend growth due to the business’s extreme cyclicality and leverage.

We also see a valuation headwind that could compress future returns, and stress that our estimates are inherently speculative, as Newcastlemax/Capesize freight rates could swing in either direction over the next five years, driving an unpredictable total return profile.

For these reasons, we rate the stock a sell, even though it could deliver strong returns during a dry bulk bull market.