DHT Holdings Inc (DHT)

[Technologic]

DHT Q1 2020 Earnings Call - Full Transcript (2020/05/06 8am EDT):
https://www.fool.com/earnings/call-transcripts/2020/05/07/dht-maritime-dht-q1-2020-earnings-call-transcript.aspx

Randy Giveans (Jefferies - Analyst) asked some great questions during the Q&A, once of which was this:
Q: "With your shares trading pretty far below NAV and well below energy and wealth at the beginning of the year, it doesn't seem like you're really getting the premiums, you probably deserve for these large dividend payouts. So going forward, are you open to either changing your return of capital policy of 60% payout, or using more of this cash for share repurchases and dividends? How do you balance this?"

Trygve Munthe (DHT - Co-Chief Executive Officer)
A: "... We tend to focus on the cash dividends. And then, of course, shareholders can increase their stakes with their dividends. We have, certainly, at times done buybacks as well. And when there's been fantastic opportunities or disconnects between the underlying business and what's going on in the stock market."

Our Take: Seeing that there is a current obvious disconnect between DHT's intrinsic value and its equity price, along with favorable future Q2, Q3, & Q4 conditions, these sub-7 levels present an opportune buyback opportunity. In an earlier post on Yahoo Finance, DHT's Forward EPS is projected to be $3.03. With today's (2020/05/07) closing price of 6.62, that would equate to a Forward P/E of a mere 2.18. This is unheard of for a company paying out a 21% Dividend Yield (6.62 divided by (0.35 x 4)!