DHT Holdings (NYSE:DHT) Has Compensated Shareholders With A Respectable 91% Return On Their Investment
NYSE:DHT) shareholders have seen the share price rise 49% over three years, well in excess of the market return (30%, not including dividends). On the other hand, the returns haven’t been quite so good recently, with shareholders up just 19% , including dividends .” data-reactid=”28″>By buying an index fund, you can roughly match the market return with ease. But if you pick the right individual stocks, you could make more than that. For example, DHT Holdings, Inc. (NYSE:DHT) shareholders have seen the share price rise 49% over three years, well in excess of the market return (30%, not including dividends). On the other hand, the returns haven’t been quite so good recently, with shareholders up just 19% , including dividends .
View our latest analysis for DHT Holdings ” data-reactid=”29″> View our latest analysis for DHT Holdings
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
DHT Holdings became profitable within the last three years. That would generally be considered a positive, so we’d expect the share price to be up.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
detailed report on its balance sheet.” data-reactid=”49″>It is of course excellent to see how DHT Holdings has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling DHT Holdings stock, you should check out this FREE detailed report on its balance sheet.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of DHT Holdings, it has a TSR of 91% for the last 3 years. That exceeds its share price return that we previously mentioned. And there’s no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
4 warning signs for DHT Holdings (1 is a bit concerning!) that you should be aware of before investing here.” data-reactid=”53″>It’s nice to see that DHT Holdings shareholders have received a total shareholder return of 19% over the last year. And that does include the dividend. That’s better than the annualised return of 2.5% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It’s always interesting to track share price performance over the longer term. But to understand DHT Holdings better, we need to consider many other factors. For example, we’ve discovered 4 warning signs for DHT Holdings (1 is a bit concerning!) that you should be aware of before investing here.
list of growing companies with considerable, recent, insider buying.” data-reactid=”54″>We will like DHT Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”56″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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