DHT Holdings Expected To Report Strong Q3
The Energy sector continues to be the place to be for investors, with the sector up 51% over the last year. That’s more than double the second place Technology sector which is up 22%. In 2026, the Energy sector has rallied 45%, double the second place Technology sector, which has rallied 23%.
Tensions in the Middle East have seen crude oil prices soar to their highest level since May, with West Texas Intermediate trading north of $102 per barrel while Brent Crude, is above $110 per barrel.
Not all Energy plays are created equal of course, after all, a rising tide lifts all boats. But eventually there will be an end to the Iran and Russia/Ukraine wars, and crude oil prices will reset. This will impact some energy stocks more than others.
For energy bulls, it’s important to look for oil and gas plays that were doing well before turmoil in the Middle East upended the industry. Chances are, if the company did well before the Iran war, it will continue to do well.
One energy stock that has been rewarding shareholders for the last number of years is DHT Holdings, Inc. (NYSE:DHT). Since the start of 2018, DHT stock has rallied an impressive 1200%. And no, those gains did not all come over the last number of months. As you can see in the chart below, DHT stock has been on a solid trajectory since the start of 2018. Though the war in Iran certainly didn’t hurt DHT stock.
For dividend hogs, DHT has been a reliable high yielding payer. Its policy is to pay out 100% of ordinary net income in the form of dividends, so the payout will fluctuate from quarter to quarter. But shareholders have been on the receiving end of some pretty big payouts.
Judging by the company’s business update on its third and fourth quarter time charter equivalent earnings, the outlook for the company’s stock and dividend payouts remains bullish.
About DHT Holdings, Inc.
Hamilton, Bermuda-based DHT Holdings is an independent crude oil tanker company. Its fleet consists of 24 oil tankers in the very large crude carrier (VLCC) segment. Each of these ocean behemoths can transport 2.0 million barrels of oil. (Source: “Our Business,” DHT Holdings, Inc., last accessed October 20, 2026.)
All of its vessels are 100% owned with most in the spot market. It’s fleet is always improving too. In September, it entered into a three-year TCE agreement with a global energy company. The agreement, which commenced in October, is for $100,000 per day for the VLCC DHT Panther. (Source: “DHT Holdings, Inc. secures three-year time charter for DHT Panther,” DHT Holdings, Inc., September 14, 2026.)
In June is entered into an agreement for the construction of a new Very Large Crude Carrier (VLCC). The vessel is scheduled for delivery in August 2028. The vessel will be a sister of two VLCC vessels the company took delivery of in the first quarter of 2026.(Source: “DHT Holdings, Inc. Announces VLCC Newbuilding with Hanwha Ocean for delivery in August 2028,” DHT Holdings, Inc., June 3, 2026.)
Back in February the company announced that it secured a one-year time charter agreement at $90,000 per day for its VLCC DHT Opal. (Source: “DHT Holdings, Inc. secures one-year time charter for DHT Opal,” DHT Holdings, Inc., February 18, 2026.)
Reports Strongest Quarter In It’s History
For the second quarter ended June 309, 2026, DHT announced that shipping revenue jumped 122% on an annual basis and 53% on a quarterly basis to $284.8 million. Adjusted net revenues were up 175% on an annual basis and 62% on a quarterly basis at $255.0 million. (Source: “DHT Holdings, Inc. Second Quarter 2026 Results,” DHT Holdings, Inc., August 5, 2026.)
During the quarter the company achieved average combined TCE earnings of $126,700 per day, comprised of $162,600 per day for its VLCCs operating in the spot market and $90,800 per day for its VLCCs on time charter. For some perspective, in the second quarter of 2025, VLCC TCE rates per day in the spot market was $48,700 and $42,800 per day for those on time charter.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew 234% on an annual basis and 73% on a sequential basis to $231 million. Second quarter net income improved 187% on an annual basis and 48% sequentially to $198 million, or $1.23 per share.
This was, the company noted, the strongest quarter in its history. Case in point, net profit for the first six months of 2026 topped its previous record full-year results of $266.3 million achieved in 2020.
Robust Q3 and Q4 Business Outlook
The outlook remains solid too. The company estimates third quarter TCE earnings for its fleet at $141,300 per day, made up of $167,100 per day for its VLCCs operating in the spot market and $114,200 per day for VLCCs on time charter.
Thus far in the fourth quarter of 2026, approximately 50% of the available spot days have been booked at an average rate of $509,100 per day. In total, approximately 78% of the available revenue days is estimated at an average rate of $225,200 per day. (Source: “DHT Holdings, Inc. Business Update,” DHT Holdings, Inc.,
Q2 Dividend Payout Soars 400%+
DHT Holdings is home to a reliable high yield distribution. As noted above, it’s dividend policy is to pay out 100% of ordinary net income. And, because of fluctuating TCE rates, the payout will vary from quarter to quarter.
Right now though, DHT Holdings is firing on all cylinders. In the second quarter it declared a dividend of $1.22 per share. That’s up more than 400% from the $0.24 it paid out in the second quarter of 2025 and up 90% over the $0.64 it paid out in the first quarter of 2026. (Source: “Dividend Information,” DHT Holdings, inc., last accessed October 20, 2026.)
This works out to an annual payout of $4.88 per share, for a forward annual dividend yield of 21.2%. This also marks the 66th consecutive quarterly cash dividend.
That’s a massive dividend yield, and is even more impressive when compared to the S&P 500’s average dividend yield of 1.05%, which is near historic lows.
DHT Stock Up 114% Year To Date
A reliable, ultra-high yield dividend is only impressive if it’s tied to a stock that’s doing well. Yield and share price have an inverse relationship. DHT stock has been performing well for years.
Most recently, on October 14, it hit a multi-year high of $26.91. That’s its highest trading level since 2008. It has pulled back a little since then, trading, as of this writing, at $23.06. That puts DHT stock up:
- 36% over the last six months
- 114% year to date
- 118% on an annual basis
Big gains indeed, but sunnier skies are ahead for DHT stock, with analyst’s providing a 12-month share price forecast average of $24.85 to a high of $30.00. This points to potential upside of 7.6% to 30%.
Those gains are even more impressive when you consider the S&P 500 has climbed 13% so far in 2026 but roughly 40% of S&P 500 listed companies are in a bear market. (Source: “Nearly 40% of the S&P 500 is in a bear market. Here are 10 of those stocks that analysts say can gain up to 81%,” Yahoo! Finance, October 16, 2026.)
Chart courtesy of StockCharts.com
The Lowdown on DHT Holdings Inc
DHT Holdings Inc is a leading independent crude oil tanker company that is reporting strong financial results and is expanding its fleet. It recently reported its best quarterly results and hiked its quarterly distribution by more than 400%. The outlook for the third and fourth quarter is also excellent.
For information and education only; not investment, tax or legal advice. Yields and prices are as of the publication date.
