Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 196

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 7
Chunk 196
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 of improving

market conditions in 2021, our board of directors

elected

to declare quarterly dividends

with respect to the

third quarter of 2021

and for each quarter

thereafter, until

the

fourth

quarter

of

2024

and

two

special

noncash

dividends,

as

described

in

Item

4A.

History

and

development of the Company.

The declaration and payment

of dividends will

always be subject to the

discretion of our board

of directors.

The

timing

and

amount

of

any

dividends

declared

will

depend

on,

among

other

things,

our

earnings,

financial condition and

cash requirements and

availability, our ability to obtain

debt and equity

financing on

acceptable terms as contemplated by our growth strategy and provisions of Marshall Islands

law affecting

the payment of dividends. In addition, other external factors,

such as our lenders imposing restrictions on

our

ability

to

pay

dividends

under

the

terms

of

our

loan

facilities,

may

limit

our

ability

to

pay

dividends.

Further,

under the

terms of

our loan

agreements, we

may not

be permitted

to pay

dividends

that would result in an event of default or if an event of default occurs

and is continuing.

Marshall

Islands

law

generally

prohibits

the

payment

of

dividends

other

than

from

surplus

or

when

a

company is insolvent or if the payment

of the dividend would render

the company insolvent. Also, our loan

facilities and bond prohibit the payment of dividends should an event

of default arise.

We believe

that, under

current law,

any dividends

that we

have paid

and may

pay in

the future

from earnings

and profits constitute

“qualified dividend

income” and as

such are generally

subject to a

20% United States

federal income tax rate with

respect to non-corporate United States shareholders. Distributions

in excess

of our earnings

and profits will

be treated first

as a non-taxable

return of capital

to the extent

of a United

States

shareholder’s tax

basis in

its

common stock

on