This Global Carrier Touts A Dividend Yield Over 100%, CEO Calls First Half Of The Year 'Best Ever'

Zinger Key Points
  • Zim declared second-quarter dividends of about $571 million, or $4.75 per share.
  • Zim is offering a dividend yield of 111.22% or $27.10 per share annually, making quarterly payments.

On Aug. 5, Zim Integrated Shipping Services Ltd. ZIM was offering a dividend yield of 44.67% or $22.35 per share.

Since then, the Haifa, Israel-based company has fallen by roughly 51%, allowing the dividend yield to float to drastic levels.

The asset-light container liner shipping company is now offering a dividend yield of 111.22% or $27.10 per share annually, making quarterly payments, with an inconsistent track record for increasing its dividend payments.

See Also: Cramer Hypes XPO Logistics - 'Just Own Some.' Zim? 'Don't Touch It'

A closer look:

  • Second-quarter dividends were about $571 million, or $4.75 per share
  • This represents approximately 30% of the second-quarter net income and a 10% one-time catch-up from the first quarter 2022 net income.
  • The rise in cash dividends can be attributed to Zim's increasing its average freight rate per twenty-foot equivalent unit (TEU) in the second quarter to $3,596 — that's a year-over-year increase of 54%.
  • Operating income for the second quarter was $1.76 billion — a year-over-year increase of 52%.
  • As the firm generates more income, in turn, it will be able to distribute more capital to its shareholders.
  • The company reaffirmed its 2022 fiscal guidance and expects to generate record adjusted EBITDA of $7.8 billion to $8.2 billion.

“We reported today strong Q2 results, including net profit of $1.34 billion, as well as our best ever first half-year results with standout margins, among the highest of our liner peers," Zim president and CEO Eli Glickman said.

See Also: Zim Integrated Shipping Shares Down After Q2 Miss

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Posted In: AsiaLong IdeasMid CapNewsGuidanceDividendsDividendsEmerging MarketsRetail SalesManagementGlobalMarketsTrading IdeasGlobal CarriersHigh Yielding StocksMarine Shipping ServicesShipping Stocks With High YieldsTriple Digit Yields
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