ZIM - ZIM Integrated: The Dividend Could Return In 2024
2024-05-01 12:17:03 ET
Summary
- ZIM Integrated Shipping stock has seen a large negative total return due to a dividend cut.
- I see positive signs emerging for ZIM now, including recovery in both volume and rates.
- I expect a net profit in 2024 and a potential return of the dividend based on its payout policy.
- If this materializes, it could lead to a substantial sentiment improvement, valuation expansion, and outsized return.
ZIM stock: The dividend lesson
Readers following my writing know that I have been warning investors about ZIM Integrated Shipping Services Ltd. ( ZIM ) since 2022 when the stock was still trading at a share price of around $23 and boasting a dividend yield of around 100%. My bearish argument was not so much about the sustainability of the yield (no one probably ever thought the dividend could be sustained). My key argument was that the dividend cut could come sooner and deeper than many bulls expected, thus leading to a large negative total return, which was indeed what happened in the next year or so....
ZIM Integrated: The Dividend Could Return In 2024