DHT Holdings – Strong Results and Reliable High Yield Dividend
Uncertainty and ongoing volatility has seen oil prices soar and demand increase. Even when the war in Iran is over, demand for crude oil will still remain strong. In 2025, crude consumption increased by 1.1 million barrels per day (bpd) and is forecast to increase by 1.2 million bpd in 2026 and an additional 1.3 million bpd in 2027. (Source: “Short-Term Energy Outlook,” U.S. Energy Information Administration, February 10, 2026.)
Increased demand for crude oil is great news for the energy industry, and in particular, midstream oil and gas stocks like DHT Holdings, Inc. (NYSE:DHT).
That’s because we use crude oil byproducts every day, whether its gasoline, heating fuels, plastics, fertilizer, pharmaceuticals, lipstick, deodorant, asphalt, medical devices etc.
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 July 28, 2026.)
All of its vessels are 100% owned with most in the spot market.
Strong Q1 Earnings and TCE Growth
For the first quarter ended March 31, 2026, DHT announced that shipping revenue increased 57% on an annual basis and 30% on a monthly basis to $186.3 million. Adjusted net revenue jumped 98% on an annual basis and 33% on a sequential basis to 157.2 million (Source: “DHT Holdings, Inc. First Quarter 2026 Results,” DHT Holdings, Inc., May 5, 2026.)
The company achieved first quarter average combined time charter equivalent earnings (TCE) of $78,800 per day. This was made up of $91,700 per day for the company’s VLCCs operating in the spot market and $61,300 per day for VLCCs on time charter
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) advanced 136% on an annual basis and 40% on a sequential basis to $133.3 million.
First quarter net income climbed an impressive 373% year over year and 149% on a monthly basis to $165 million
In mid July the company announced that second quarter TCE earnings for its fleet were $126,700 per day, comprising $162,600 per day for the company’s VLCCs operating in the spot market and $90,800 per day for it’s VLCCs on time charter. (Source: “Business Update,” DHT Holdings, Inc., July 13, 2026.)
Looking ahead to the third quarter, approximately 48% of the available spot days were booked at an average rate of $139,700 per day on a discharge-to-discharge basis. In total, 74% of the available revenue days, including both spot and time-charter days, have been booked at an average rate of $94,300 per day.
Announces 65th Consecutive Quarterly Dividend
DHT Holdings is home to a reliable high yield distribution. It’s dividend policy is to pay out 100% of ordinary net income. And, because of its fluctuating TCE rates, the payout will vary from quarter to quarter.
Right now, DHT Holdings is firing on all cylinders. In the first quarter, paid a dividend of $0.64 per share. That’s up 326% from the $0.15 paid in the first quarter of 2025 and up 56% from the $0.41 it paid in the fourth quarter of 2025. (Source: “Dividend Information,” DHT Holdings, inc., last accessed July 28, 2026.)
This marks the company’s 65h consecutive quarterly cash dividend.
DHT Stock Thumping S&P 500
On June 24, DHT stock hit a new 52-week intra-day high of $20.19; it’s highest trading level since 2011.
As of this July 28 writing, DHT stock is crushing the S&P 500, trading up:
- 42% over the last six months
- 61% year to date
- 80% year over year
- 66% over the last two years
- 90% over the last two years
- 359% over the last five years
Big gains, but Wall Street sees DHT stock hitting fresh multi-year highs over the coming quarters, with analysts providing a 12 month share price target range of $20.20 to $23.00 per share. This points to potential gains of approximately nine percent to 24%.
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 increased its quarterly distribution by 326% on an annual basis and has not missed a payout for 65 consecutive quarters. It’s stock is also trading at its highest levels since 2011.