■ Announcement · August 13, 2026
DHT Holdings (DHT) Ex-Dividend Date Approaching: Key Details
DHT Holdings will trade ex-dividend on August 17, with a $1.22 per share payout. The company's dividend is covered by earnings but not by free cash flow.
Ex-Dividend Date and Payment Schedule
DHT Holdings, Inc. (NYSE:DHT) is set to trade ex-dividend in three days. The ex-dividend date is August 17, 2023, which is one business day before the record date. Investors who purchase shares on or before August 16 will be eligible for the upcoming dividend payment of $1.22 per share, scheduled to be paid on August 24, 2023.
Dividend Yield and Coverage
Over the past 12 months, DHT Holdings has distributed a total of $1.86 per share in dividends. Based on the current share price of $18.72, the trailing dividend yield stands at approximately 9.9%.
Dividend coverage is a critical factor for sustainability. In the last fiscal year, the company paid out 83% of its earnings as dividends, which is within a reasonable range but leaves limited room for reinvestment. However, the more concerning metric is free cash flow: DHT Holdings paid out 653% of its free cash flow in dividends, a level that is not sustainable over the long term. This indicates that the company is funding its dividend payments through other means, such as debt or cash reserves, which could pose a risk if the business faces a downturn.
Earnings Growth and Dividend History
On a positive note, DHT Holdings has demonstrated consistent earnings growth, with earnings per share increasing at an average annual rate of 11% over the past five years. This growth provides a foundation for potential future dividend increases. Additionally, the company has a track record of dividend growth, having raised its dividend at an average rate of 10.0% per year over the last decade.
While the earnings growth and dividend history are encouraging, the significant gap between earnings and free cash flow coverage is a red flag. Investors should monitor whether the company can align its dividend payments with its cash generation.
What it means for income investors
DHT Holdings offers a high trailing yield, but the dividend is not fully supported by free cash flow, which may raise concerns about long-term sustainability. Income-focused investors should weigh the company's earnings growth and dividend history against its cash flow challenges when evaluating the stock.
Reporting based on: simplywall.st. Figures verified against market data where available.