Tsakos Energy Navigation: Getting Cautious On The Preferred Stock

The Investment DoctorInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryTsakos Energy Navigation delivered strong Q4 2025 results, with operating income nearly doubling to $81M and EPS of $1.70.TNP’s preferred shares remain well-covered, backed by $1.6B in common equity, but face a likely call in July 2028, limiting upside.Common shares are positioned to benefit from sector tailwinds, with over $4B in locked-in contract revenue and ongoing fleet optimization.I maintain a light buy on Series F preferreds for a 2–2.5 year horizon, despite a shrinking yield premium and potential 10% capital loss at call.Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas. Learn More » StratosGiannikos/iStock via Getty Images Introduction In a previous article on Tsakos Energy Navigation (TEN), I argued investors didn’t have to choose between the common shares and the preferred shares. The preferred shares offered an interesting income component, but theThis article was written byThe Investment Doctor23.68K FollowersFollowThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of TEN.PR.F either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I also have a long position in the common shares of TEN. No position in TEN.PR.E right now.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.