Why some brokers show dividend yeld very small for DHT?


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The discrepancy in reported dividend yields for DHT Holdings Inc. (DHT) could be attributed to the following factors:
- Recent Increase in Stock Price: DHT Holdings' stock price has increased by 44% in the last 3 months1. This significant rise in the stock price could lead to a decrease in the dividend yield, as the dividend payment remains the same while the stock price increases.
- High Dividend Payout Ratio: DHT Holdings has a dividend payout ratio of 1.16 as of 2023-12-312, which suggests that the company is distributing a substantial portion of its earnings as dividends. This high payout ratio could be a factor in some brokers' calculations of dividend yield, which may appear small compared to the actual yield when factoring in the stock price appreciation.
- Sustainability Concerns: While DHT Holdings has shown impressive dividend growth over the past decade, the current payout ratio and recent negative growth rates in revenue and earnings may raise concerns about the sustainability of its dividends2. This could lead to a more conservative assessment of the dividend yield by some brokers.
In conclusion, the variation in reported dividend yields for DHT Holdings may be influenced by the recent increase in stock price, high dividend payout ratio, and sustainability concerns. It is important to consider all these factors when evaluating the dividend yield and investment potential of DHT Holdings.
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