3 Dividend Stocks to Weather Market Volatility: DHT, SUN, and More

DHT Holdings, a crude oil tanker company, reported EPS of 27 cents, exceeding analyst predictions by 12 cents in Q1. The company has a strong dividend history, a 5.30% dividend yield, and a reasonable dividend payout ratio of 54.55%. Analysts rate DHT shares a Buy, with a consensus price target 14% higher than current levels. Sunoco LP, a major motor fuel retailer, has agreed to purchase a Canadian gas station and convenience store chain, boosting its expansion plan. Sunoco's dividend yield is 6.67%, and its dividend payout ratio is 64.68%.

In the first quarter of 2025, several notable developments have shaped the financial landscape, particularly within the energy sector. Parkland Corporation, a major fuel distributor, has filed a Management Information Circular for a strategic merger with Sunoco LP, which promises significant synergies and shareholder value. Meanwhile, DHT Holdings, a crude oil tanker company, reported strong earnings and a robust dividend history. Additionally, Sunoco LP has expanded its operations by acquiring a Canadian gas station and convenience store chain. These moves underscore the sector's focus on growth and shareholder returns.

Parkland Corporation and Sunoco LP Merger

Parkland Corporation has proposed a strategic merger with Sunoco LP, aiming to create one of the largest independent fuel distributors in the Americas [1]. The arrangement offers shareholders three consideration options: C$19.80 in cash plus 0.295 SunocoCorp units, C$44.00 in cash, or 0.536 SunocoCorp units. The deal represents a 25% premium based on the 7-day VWAP as of May 2, 2025. The combined entity is expected to achieve US$250 million in annual synergies by year three, highlighting substantial operational efficiency gains.

Sunoco LP has committed to maintaining a Calgary headquarters and investing in Canadian operations, demonstrating a strong commitment to Parkland's legacy operations. The transaction requires shareholder approval at a meeting scheduled for June 24, 2025, with a voting deadline of June 20, 2025. This transformative deal offers a compelling strategic rationale, including geographic diversification and enhanced earnings resiliency.

DHT Holdings' Strong Q1 Earnings and Dividend History

DHT Holdings, a crude oil tanker company, reported EPS of 27 cents for Q1 2025, exceeding analyst predictions by 12 cents. The company's strong dividend history, with a 5.30% dividend yield, and a reasonable dividend payout ratio of 54.55%, underscore its commitment to shareholder returns. Analysts rate DHT shares as a Buy, with a consensus price target 14% higher than current levels, reflecting optimism in the company's future prospects.

Sunoco LP's Expansion Plan

Sunoco LP has agreed to purchase a Canadian gas station and convenience store chain, boosting its expansion plan. This acquisition aligns with Sunoco's strategy to enhance its presence in the Canadian market. Sunoco's dividend yield stands at 6.67%, with a dividend payout ratio of 64.68%, indicating a robust dividend policy that supports shareholder returns.

Conclusion

The energy sector continues to evolve, with strategic mergers and acquisitions driving growth and shareholder value. Parkland Corporation's merger with Sunoco LP promises significant synergies and operational efficiency gains, while DHT Holdings' strong earnings and dividend history reinforce its position as a solid investment. Sunoco LP's expansion plan in Canada further underscores the sector's focus on geographic diversification and market expansion.

References

[1] https://www.stocktitan.net/news/ET/parkland-files-management-information-circular-for-arrangement-with-e5x562ukv2oj.html