FLEX LNG: 10%-Yielding Dividend Stock Hits Record High
March 25, 2026
Outlook For FLEX LNG Remains Bullish
Industry tailwinds are helping propel FLEX LNG Ltd (NYSE:FLNG) stock to record levels. With FLEX LNG being a liquified natural gas (LNG) marine shipping company, FLNG stock is being juiced by strong natural gas prices and equally strong demand.
ExxonMobil expects global natural gas demand to increase by more than 20% between now and 2050. This big increase will come from growing electricity demand in emerging markets and the transition away from coal. (Source: “Exxon sees natural gas demand surging in outlook to 2050,” Reuters, August 28, 2025.)
Near-term demand is also coming from buyers in Asia and Europe who are looking to secure LNG from U.S. suppliers in an effort to reduce their dependence on less reliable sources from Russia.
Greater demand for natural gas means greater demand for LNG shipping companies like FLEX LNG.
About FLEX LNG
FLEX LNG is a marine shipping company focused on the LNG market. Its fleet consists of 13 LNG carriers with an average fleet age of just 5.5 years. It has built up a significant contract backlog, with 11 of its 13 vessels on long-term, fixed-rate charter contracts and one vessel on a variable hire time charter. (Source: “Company Profile,” FLEX LNG Ltd, March 17, 2026.)
In late 2024, FLEX LNG strengthened its earnings foundation by securing up to 37 years of new contract backlog for three of its vessels. As a result, its total minimum firm backlog now stands at 50 years. With extensions options, this number could potentially expand to 75 years, which provides the company, and its shareholders, with strong earnings visibility.
Solid Q4 Results
For the fourth quarter ended December 31, 2025, FLEX LNG reported vessel revenue of $87.5 million, up from $85.7 million in the same prior-year period. The average time charter equivalent (TCE) rate came in at $70,119 per day for the fourth quarter of 2025, down slightly from $70,921 per day for the third quarter of 2025. (Source: “Fourth Quarter 2025 Results Presentation,” FLEX LNG Ltd, February 11, 2026.)
The company’s net income increased 28% to $21.6 million, or $0.40 per share, from $16.8 million, or $0.31 per share, in the third quarter of 2025. Its adjusted net income was $23.3 million, compared to $23.5 million for the third quarter of 2025.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) inched up to $61.8 million from $61.2 million in the third quarter of 2025.
FLEX LNG strengthened its balance sheet in 2025, completing three refinancings worth a total of $530.0 million. As a result, it has no debt maturities before 2029, closing the year with a robust cash position of $448.0 million.
Thanks to solid earnings, substantial backlog, and a strong balance sheet, FLEX LNG has been able to provide investors with a reliable dividend payout. (Source: “Dividend,” FLEX LNG Ltd, last accessed March 17, 2026.)
This includes a fourth-quarter payout of $0.75 per share, or $3.00 per share on an annual basis, for a current forward dividend yield of 10.3%. This represents FLNG stock’s 18th consecutive ordinary quarterly dividend payment of $0.75 per share. When adding special dividends, FLEX has paid out approximately $770.0 million in dividends to its shareholders since 2021.
Since listing on the NYSE in 2019, FLNG stock has paid out approximately $850.0 million in dividends, yielding 417% in total shareholder returns.
FLNG Stock Hits Record High
FLNG stock has been a little volatile over the last number of years, though that’s not a big surprise, as these kinds of stocks tend to fluctuate with supply/demand metrics and underlying commodity prices.
Still, FLNG stock is still doing well in 2026, having hit a new record high of $30.85 on March 9. It continues to trade near that level at $29.23.
As of March 17, FLNG stock is trading up:
- 12% over the last month
- 20% year to date
- 47% year over year
Big gains, but Wall Street thinks that even bigger gains are in store with FLNG, with analysts providing a 12-month share price target range of $32.67 to $42.00 per share. This points to potential gains of approximately 4.5% to 34%.
Chart courtesy of StockCharts.com
The Lowdown on FLEX LNG Ltd
FLEX LNG is a great marine shipping company with a modern fleet of vessels, which should help it take advantage of significantly growing demand for LNG. It has a “robust balance sheet,” which includes stable cash flows, available capital, and ample liquidity.
FLEX LNG also has a substantial minimum firm backlog of 50 years, which could grow to 75 years with charterers’ extension option. This, coupled with strong demand for LNG, bodes well for longer-term earnings and cash flow growth, which should support FLNG stock’s growing dividend as well.
