Teekay Tankers Ltd (TNK) Raises Quarterly Dividend to $0.12; Yields 6.5%

Teekay Tankers Ltd (NYSE: TNK) declared a quarterly dividend of $0.12 per share, or $0.48 annualized. This is a 300% increase from the prior dividend of $0.03.

The dividend will be payable on February 12, 2016, to stockholders of record on February 2, 2016, with an ex-dividend date of January 29, 2016.

The annual yield on the dividend is 6.5 percent.

Teekay announced that its Board of Directors has approved a new dividend policy, effective immediately, under which the Company intends to pay out 30 to 50 percent of its quarterly adjusted net income(1), with a minimum quarterly dividend of $0.03 per share, subject to any reserves determined to be required by the Company's Board of Directors. The new dividend policy will provide investors the opportunity to more directly participate in the earnings from the tanker market while also enable the Company to further strengthen its balance sheet.

"During the past year, we have successfully expanded our owned fleet by 17 vessels through accretive acquisitions in addition to growing our in-the-money chartered-in fleet. Our new dividend policy will provide long-term investors the opportunity to more directly participate in the Company's strong free cash flow generation while enabling further de-levering of our balance sheet, which increases the Company's net asset value and further strengthens our financial position," commented Kevin Mackay, Teekay Tankers' Chief Executive Officer. "We believe the new dividend policy provides the right balance between prudently managing the balance sheet and distributing cash to shareholders. Given our desire to further de-lever our balance sheet over the near-term, the dividend declared for fourth quarter of 2015 is based on the lower end of the intended payout ratio of 30 to 50 percent of adjusted net income. Going forward, the payout ratio will be determined taking into account several factors, including the Company's financial leverage and potential growth opportunities, amongst others."

Mr. Mackay continued, "We are also grateful for the continued strong support we receive from our growing bank group, as represented by our new $900 million debt facility, which was 1.4 times oversubscribed. With the combination of these two key financial initiatives and the Company's well-timed fleet growth and renewal over the past year, we believe Teekay Tankers' shareholders are well-positioned to benefit from what we expect will continue to be a strong tanker market."

(1) Adjusted net income attributable to shareholders of Teekay Tankers is a non-GAAP financial measure. Adjusted net income excludes specific items affecting net income that are typically excluded by securities analysts in their published estimates of the Company's financial results, including unrealized gains and losses from derivative instruments.

For a dividend history and other dividend-related data on Teekay Tankers Ltd (TNK) click here.

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