$Torm PLC(TRMD)$ I hold this stock mainly for dividend, not for growth. Decided to cut some to take profit for now. I did some analysis.

TORM is a major product-tanker operator, transporting refined products such as diesel, gasoline and jet fuel. Its earnings are highly sensitive to tanker freight rates.

🟢 What’s attractive

1. 2026 has started very strongly

Q1 2026:

* TCE revenue: $286M, +34% YoY

* EBITDA: $201M, +48%

* Net profit: $122M, +94%

* EPS: $1.21

* TCE rate: $34,937/day, versus $26,807 a year earlier.

That’s a very strong operating environment.

2. The dividend is a major attraction

TORM paid $0.70/share for Q1, representing a 58% payout ratio.

At roughly $32/share, even a $0.70 quarterly dividend would represent an annualised yield of about 8.8%.

But importantly, don’t assume $2.80/year is guaranteed. TORM’s dividend is variable and depends heavily on tanker earnings.

3. Fleet value provides some downside support

TORM’s March 2026 NAV was approximately $3.04B, while its fleet was valued at about $3.62B.

The fleet is also expected to grow to 103 vessels after the planned deliveries.

🟢 4. Tanker fundamentals look favourable

The big catalyst is tight tanker supply + strong demand for refined petroleum transportation.

Geopolitical disruptions can be particularly beneficial to tanker companies because longer voyages increase the number of ships required to move the same amount of oil.

TORM itself said rates reached record levels in April and subsequently raised its 2026 outlook.

⸻

⚠️ The biggest risk

TRMD is not a normal growth stock.

Its earnings can fall dramatically when tanker rates normalise.

For example, TORM’s original 2026 outlook had a huge range:

TCE earnings: $850M–$1.25B

That illustrates how uncertain tanker earnings can be.

And this is why a low P/E can be misleading. If you buy when tanker rates are exceptionally high, the company can look extremely cheap just before earnings decline.