- Dividends, generally considered a dependable source of revenue, are typically distributed by well-established, stable firms.
- DHT Holdings, an autonomous crude oil tanker company, has a dividend yield of 9.81% based on Tuesday’s closing price.
- Frontline Plc., a shipping corporation, has a dividend yield of 17.40% based on Tuesday's closing price.
Dividend stocks are essentially businesses that regularly distribute their earnings to shareholders through dividends, and they have a proven track record of doing so. These dividends offer investors a dependable source of income, somewhat like the interest accrued when you keep your money invested for an extended period.
In times of increasing inflation, allocating your investments to dividend-paying stocks, particularly those with strong dividend growth, can act as a protective measure to counter its effects. Dividend stocks are generally seen as stable and trustworthy companies, which tend to experience lower market fluctuations and are less prone to sudden and drastic price changes.
DHT Holdings, Inc. (NYSE: DHT)
DHT Holdings Inc operates as an autonomous oil tanker company with a fleet engaged in international crude oil tanker trade, primarily involving Very Large Crude Carriers (VLCCs). The company derives its income from both time charter and spot market activities.
DHT’s total revenue in Q2 2023 was 153.047 million. Meanwhile, it reported an average combined time charter equivalent earning of US$56,300 per day for the quarter.
In Q2 2023, DHT’s adjusted EBITDA stood at US$89.8 million, while the net profit for that quarter amounted to US$57.1 million, translating to US$0.35 per basic share.
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DHT approved a dividend of US$0.35 per common share for Q2 2023. Based on Tuesday's closing price of US$10.19, DHT has a dividend yield of 9.81% and a P/E ratio of 10x.
Frontline Plc. (NYSE: FRO)
Frontline Ltd is a shipping corporation specializing in the maritime conveyance of both crude oil and oil products. The company conducts its operations mainly in the tankers division, encompassing both crude oil tankers and product tankers.
The company achieved its most substantial second-quarter earnings since 2008, totalling US$230.7 million, equivalent to US$1.04 per basic and diluted share during Q2 2023.
Additionally, there was an adjusted profit of US$210.0 million, translating to US$0.94 per basic and diluted share for the same period. Furthermore, a cash dividend of US$0.80 per share for the second quarter of 2023 was declared.
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The company's reported revenues for Q2 2023 amounted to US$512.8 million.
Based on Tuesday's closing price of US$19.69, FRO has a dividend yield of 17.40%. The stock closed 2.23% higher intraday on Tuesday.