ZIM Integrated: 176% Dividend Yield Is Enticing But Weigh The Risks

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  • With a 176% yield and 0.46 P/E, shipping carrier ZIM Integrated is getting quite a lot of attention.
  • With earnings prospects looking bleak, however, the dividend may not be sustainable and any reductions in dividend payments could affect their stock price resulting in a capital loss.
  • Catalysts such as news of a potential takeover could lift the share price, but the likelihood of this happening is low.

Container Ship Beneath Bridge


Israeli shipping carrier ZIM Integrated Shipping Services (NYSE:ZIM) enjoyed a stellar two years on the back of soaring ocean freight rates and their strategy of rapid capacity expansion. With both earnings drivers normalizing, however, their earnings prospects look weak and

Shipping container costs from China to U.S west coast per 40-foot container

The Economist

Number of vessels waiting

Logistics Management

ZIM freight revenues by geographic trade zone, September 2022

ZIM quarterly report, September 2022

Top 10 carrier groups' share of global fleet


Shipping carrier order book


Existing fleet capacity + newbuilds


ZIM integrated analyst rating


This article was written by

LD Investments profile picture
Long only, focused on high quality businesses with economic moats and solid business fundamentals. Sector and geography agnostic. Long term investment horizon. None of the articles constitute investment advice.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is not a recommendation to buy or sell any stock mentioned. Please consult with a professional investment advisor prior to making any decisions.

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