Current Report: TORM Could Gain 41.7% Next Year

This company was founded in 1889 and is headquartered in London, the United Kingdom.

TORM (TRMD) transports clean and dirty petroleum products and operates in the Tanker and Marine Engineering segments.

Three key data points gauge TRMD (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

TRMD Price

TORM’s single share price climbed over 33% in the past year, from $21.75 to $33.14 per Wednesday’s opening market report.

Two analysts cover the stock, and the median of their one year target price estimates projected a $3.42 annual price gain. However, the average of TRMD’s past five year price progression from  $8.05 to $33.14 shows an average annual gain of about $5.02. 

So, averaging the analyst-estimated annual $3.42 price upside estimate against the $5.02 five-year annual average performance produces a $4.22 annual gain estimate, which I’ll use for the coming year’s returns, which must include the annual dividends, too.

TRMD Dividends

TORM has paid variable Quarterly dividends since April 2023. The most recent Q dividend of $2.40 (equating to $9.60 annually) is payable September 24th, 2026 (to shareholders of record September 10th), yielding 28.91% annually (per Wednesday’s opening market report)

TRMD Returns

Putting it all together, as of September 2nd, a possible TORM Plc gross gain of $13.82 was projected. 

To get there, our $4.22 per share averaged annual gain was added to the $9.60 presumed forward-looking annual dividend to make that $13.82 gross gain. 

A little over $1000 invested in TRMD at Wednesday’s $33.14 opening share price would buy 30 shares, which multiply the hypothetical $13.82 gross gain to $417.02 for the coming year, or 41.70%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

TRMD’s projected annual dividend from $1K invested is $289.10, and that annual dividend proves to be over 8.7 times more than its recent $33.14 single-share price. 

The exact track of TRMD’s future share price and dividend will entirely be determined by market action and company finances.  

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.