Among the stock market hopefuls lining up to test investors’ appetites are two companies offering high yields backed by cash generative business models.

Shipping trust Taylor Maritime Investments (TMIP) should debut on 27 May, targeting an 7% dividend yield. The trust’s objective is to provide an attractive level of ‘regular, stable and growing’ income and the potential for capital growth through investing in vessels employed on fixed period charters.

Taylor Maritime has agreed to acquire a seed portfolio of 23 dry bulk ships and offers a play on global economic recovery. Shipping remains the most cost-effective and efficient means of transportation given distances and essential commodities volumes, while second-hand ships are currently undervalued, giving Taylor Maritime the opportunity to acquire vessels at potentially attractive valuations.

Food and drink wholesaler Kitwave (KITW:AIM) is an reopening play which comes to market on 24 May offering a 4.5% dividend yield. It delivers sweets, soft drinks, frozen and chilled foods, alcohol, groceries and tobacco to a diverse 38,000-strong customer base spanning convenience stores, pubs, vending machine operators and foodservice providers.

Growth has been achieved organically and by gobbling up smaller, family-owned businesses and CEO Paul Young insists Kitwave has further growth opportunities in the fragmented grocery and foodservice wholesale market.

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