TORM offers nearly 13% yield with a low payout ratio but faces risks from fluctuating freight rates.

TORM, an oil tanker company, yields 12.9% with a payout ratio of just 34.9%, trading at about 6 times earnings, suggesting a safe dividend. Its dividends depend heavily on freight rates, which have recently fluctuated due to geopolitical events and oil market dynamics. While the dividend policy is sustainable with moderate debt and a formula-based payout, the high yield is partly due to temporarily elevated earnings from current market conditions. Investors should watch freight rates closely, as normalization could reduce the dividend yield.

As of Nov 10, 2026 19:51 WIB, TORM plc (TRMD) trades at USD 33.93 on Pluang, down 1.77% in the last day. The stock offers a dividend yield of 14.91%, which is higher than the 12.9% yield mentioned in the article. Trading volume reached 1,714,971 shares, with 75% of Pluang orders being sell orders, indicating cautious sentiment among investors.