International Seaways Raises Quarterly Dividend 11.0% to $5.05

International Seaways raised its quarterly dividend 11.0% to $5.05 per share from $4.55. The latest payment went ex-dividend on September 10, 2026, extending a rapid sequence of larger distributions during a period of unusually strong tanker earnings.

Why the dividend changed

The higher dividend followed a record second quarter for International Seaways. The tanker operator reported record net income, adjusted earnings before interest, taxes, depreciation and amortization, and free cash flow. Revenue increased primarily because of higher spot-market earnings across the fleet and improved profit-sharing results on applicable time charters, according to the company’s second-quarter results.

Management presented the dividend as a product of cash generation and its capital-allocation policy. Chief Executive Lois Zabrocky said the company’s balance sheet, lower cash break-even levels and mix of crude and product tankers had positioned it to generate cash across market cycles. Chief Financial Officer Jeff Pribor emphasized that the company retained flexibility to invest while returning cash to shareholders.

The operating backdrop was exceptional but volatile. International Seaways said higher daily rates drove the quarterly improvement. Its quarterly SEC filing attributed elevated tanker rates partly to Middle East hostilities, attacks on merchant shipping and disruption around the Strait of Hormuz. The filing also cautioned that historically high charter rates were unlikely to persist indefinitely. That cyclicality helps explain why the company’s distributions can change sharply between quarters.

International Seaways continued investing alongside the dividend. It contracted additional dual-fuel-ready LR1 newbuildings, took delivery of another LR1 and expected the remaining two vessels from its original program during the third quarter. It also sold older vessels and consolidated ownership of the Tankers International commercial pool, according to the results release.

Dividend track record

The payment history shows a variable distribution rather than a steadily rising conventional dividend. Quarterly payments moved from $1.20 in December 2024 to $0.70, $0.60, $0.77 and $0.86 during 2025. They then increased to $2.15 in March 2026, $4.55 in June and $5.05 in September.

Annual totals tell the same story. Payments rose 343.0% to $6.29 per share in 2023, fell 8.3% to $5.77 in 2024 and fell another 49.2% to $2.93 in 2025. The last annual cut occurred in 2025, leaving the company with 0 consecutive years of dividend growth even though its five-year record shows 65.1% annual growth. The distinction matters: long-term growth has been substantial, but it has not followed a smooth or dependable progression.

Is the dividend covered?

The earnings payout ratio is 25%. That indicates the stated annual dividend consumes a minority of reported earnings, leaving an earnings cushion at the current point in the tanker cycle.

SmarterDividends nevertheless rates the dividend D. The grade denotes an unsafe dividend because the payment record is volatile and the underlying business depends heavily on cyclical spot charter rates. The low earnings payout ratio describes current coverage, while the safety grade captures the risk that earnings and distributions can retreat when shipping conditions weaken. The 2025 annual cut illustrates that distinction.

Yield and valuation

The forward yield is 8.02%, compared with the Energy sector median of 4.23%. The higher yield offers more current income, but it also sits alongside a history of variable quarterly payments rather than an established growth streak. At the stated annual dividend of $8.18 per share, 100 shares produce $818.00 in annual income.

The shares are priced at $104.79 after a 117.0% gain over one year. SmarterDividends estimates fair value at $84.27 and classifies the shares as overvalued, with 24% downside to that estimate. The valuation assessment is separate from dividend coverage: it compares the market price with the fair-value estimate rather than measuring the company’s capacity to fund a distribution.

What to watch

The next quarterly results will show whether strong spot tanker earnings and profit-sharing continued after the record second quarter. Investors can also track the remaining two LR1 deliveries expected during the third quarter and the company’s integration of Tankers International, both of which affect fleet deployment and future cash generation. International Seaways’ filing identifies charter-rate volatility, vessel supply, fuel costs and geopolitical disruption as material operating variables.

The payment pattern remains the clearest dividend marker. The move from $2.15 to $4.55 and then $5.05 over the three newest payments reflects current cash generation, while the 49.2% annual reduction in 2025 demonstrates how quickly income can change. Future declarations, tanker rates and quarterly earnings will determine whether the latest level is maintained.