Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Added to DHT

I added a bit to my holding of DHT, a newer core position in my portfolio. I am, and have been a long term bull on oil, but about a year ago, made the decision to diversify my energy holdings beyond positions in oil companies, and add positions in companies that are energy-related, but less dependent on the price of oil.

Because I'm dealing with a retirement portfolio, my priorities are income/yield first, followed by capital appreciation. My first diversification away from oil companies (Canroys, specifically), was into oil/gas pipeline MLPs, and I opened positions in KMR and MMP. I then started looking into tanker companies, coming up with a short "watchlist" of promising suspects. I settled on DHT, a small company with 9 tankers, divided between the Suezmax and Aframax classes. A big reason for picking DHT, is that they tend to favor long-term charters over keeping their ships on the spot market, which may place something of a lid on outsized earning/dividends, but results in much lower volativity in earnings, a characteristic of companies in this sector. As time goes on, I'll be looking to add a second tanker company to the portfolio.

Full disclosure: Long KMR, MMP, DHT.