DHT: BW Overhang Almost Gone, Q2 Dividend Could Top 20%

Melissa Tucker1.15K FollowersFollow5ShareSavePlay(8min)CommentsSummaryDHT Holdings is generating exceptional cash flows amid elevated VLCC rates, yet the stock price lags fundamentals.I estimate Q2 annualized yield could exceed 20%, with Q2 EPS around $0.9 and dividend yield above 22%.DHT trades at 1.1x NAV; a 1.3x NAV would imply a $20 fair value, offering 20% upside if rates persist.Risks include prolonged Strait of Hormuz closure or a global recession, but strong charter coverage ensures baseline profitability. Iuliia Antonova/iStock Editorial via Getty Images Investment Thesis DHT Holdings (DHT) is experiencing astonishing rates despite the stock not reflecting them. I expect that Q2 yield could be above 20% annualized, depending on achieved rates. Moreover, if the Strait of Hormuz reopens inThis article was written byMelissa Tucker1.15K FollowersFollowWith a professional background spanning multiple industries, from logistics, construction to retail, I bring a diverse perspective to investing. My international education and career experiences have provided me with a global outlook and the ability to analyze market dynamics from different cultural and economic perspectives. I have been actively investing for over a decade, honing a strategy that focuses on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex. My interest in cyclical sectors stems from their potential for significant returns during periods of economic recovery and growth. However, I also recognize the importance of balancing risk, which is why I incorporate fixed-income investments (long or short).Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. 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.