Investors lovedividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
24/7 Wall St. Key Points:
- Shipping stocks can explode higher as day rates for the sector increase.
- Dividend stocks like these should do well as interest rates trend lower.
- If the oil benchmarks stay above the $60 level, OPEC+ will likely keep production increases intact.
- Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
According topublished industry content. The estimated worldwide total very large crude carriers (VLCC) fleet (vessels over 200,000 deadweight tonnage) is currently around 897 vessels, up slightly from earlier 2025 estimates, due to minimal deliveries with an average age of 10.8 years. Only 20 vessels (2.3% of the fleet), with just five to six deliveries expected in 2025 (a record low, compared to a historical average of 35 per year). Over the past five years, the fleet grew nominally by over 100 vessels, but the practical capacity added was only about 60, due to aging inefficiencies.
A new researchreport from the Jefferies Maritime Group makes a compelling case for owning shares in five top VLCC companies. They noted this in their report when discussing the industry’s outlook, which could change dramatically over the next few years:
Mid-sized crude and product tankers enjoyed record earnings during 2022-2024, while VLCCs lagged due to OPEC+ cuts. With OPEC+ now reversing course, VLCCs are set to receive their due and stronger rates should cascade across all tanker segments. Companies are entering this next phase with their strongest balance sheets ever, having made good use of the past few years. We raise our estimates and targets across our coverage.
Eight topcompanies are rated Buy at Jefferies, and three appear to be outstanding total return ideas for the remainder of this year, particularly in 2026, as shipments are expected to increase.
DHT
Loading stock data...DHT HoldingsInc. (NYSE: DHT) is an independent crude oil tanker company with fleets that trade internationally. Trading under $13, with a solid 7.68% dividend, this company could be a total return home run. The company’s fleet trades internationally and consists of crude oil tankers in the VLCC segment.
Its primarybusiness is operating a fleet of crude oil tankers, and its secondary activity is providing technical management services.
The companyoperates its vessels through its subsidiary management companies in:
- Monaco
- Norway
- Singapore
- India
Its principalactivity is the ownership and operation of a fleet of crude oil carriers, which currently numbers approximately 28 vessels.
The fleetoperates globally on international routes. The company’s fleets, among others, are comprised of:
- DHT Addax
- DHT Antelope
- DHT Gazelle
- DHT Impala
- DHT Appaloosa
- DHT Mustang
- DHT Bronco
- DHT Colt
- DHT Stallion
- DHT Tiger
- DHT Harrier
- DHT Puma
- DHT Panther
- DHT Osprey
- DHT Lion
- DHT Leopard
- DHT Jaguar
- DHT Taiga
- DHT Sundarbans
- DHT Scandinavia
The Jefferiesprice target is set at $16.
Frontline
Loading stock data...Frontline PLC (NYSE: FRO) is the world’s fourth-largest oil tanker shipping company. While off the radar of most investors, shares of this Cyprus-based shipping company could explode higher, and it pays a solid 4.65% dividend. Frontline’s primary focus is on seaborne transportation of crude oil and refined products.
The companyowns and operates a fleet comprising multiple VLCCs, Suezmaxes, and LR2/Aframax tankers, designed for the transportation of oil and cargo. Frontline operates worldwide, and following multiple fleet transactions last year and the completion of the delivery of all 24 VLCCs acquired from Euronav NV, Frontline’s fleet will consist of 84 vessels comprised of:
- 41 VLCCs
- 25 Suezmax tankers
- 18 LR2/Aframax tankers
Frontlineshares have surged 50% this year and boast a three-year total return of more than 130%. Recent momentum, driven by positive industry trends and a dividend announcement, has sustained the stock’s steady performance over the past year. Despite year-over-year challenges, rising quarterly net income signals an improving short-term outlook, tempered by cautious long-term optimism.
The Jefferiesprice target for the stock is $25.
International Seaways
Loading stock data...International SeawaysInc. (NYSE: INSW) is one of the largest tanker companies worldwide, providing energy transportation services for crude oil and petroleum products in international flag markets. Investors seeking ultra-high-yield stocks will appreciate this VLCC giant, which pays shareholders a substantial 6.87% dividend. The company operates through two segments.
The Crude Tankers segment comprises a fleet of VLCCs, Suezmaxes, and Aframaxes, which are engaged in the worldwide transportation of crude oil.
This segmentalso includes its crude tankers lightening business, through which it provides ship-to-ship (STS) lightening support services and full-service STS lightening to customers in these regions.
- United States Gulf
- United States Pacific
- Grand Bahama
- Panama
The ProductCarriers segment comprises a fleet of MRs, LR1 product carriers, and an LR2 product carrier, all of which are engaged in the worldwide transportation of refined petroleum products.
InternationalSeaways owns and operates a fleet of about 82 vessels, including:
- 13 VLCCs
- 13 Suezmaxes
- 5 Aframaxes/LR2s, 13 LR1s (including six new buildings)
- 38 MR tankers
Jefferieshas set a $58 target price for the shares.
As Warren Buffett Indicator Signals Danger, His Four Highest-Yielding Stocks Offer Safety
If You’ve Been Thinking About Retirement, Pay Attention (sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:- Answer a Few Simple Questions.
- Get Matched with Vetted Advisors
- Choose Your Fit