Have not read the earnings call transcript. However, I can say there were a lot of pleasant surprises.
Yes, Q4 revenue dropped. Earnings also dropped. However, ZIM was still profitable in Q4 2022.
Container volume declined. But not as severely as I expected.
Dividend size was a surprise. I was expecting the dividend from the operational side to be $0.75 - $1. If there was a ātop-upā, I thought ZIM mgmt would be more cautious, and maybe add 5% as ātop-upā (or $1 - 2/sh)
Over $4B in cash.
More fuel-efficient vessels join the fleet in 2023.
What is the ex dividend date for this dividend? I couldnāt find the news for thatā¦doc
Before I provide a better resource, this heads-up. As an Israel based company, there is a 26% Israel withholding tax on ZIM dividends. This makes ZIM a bad holding for tax advantage accounts. Even taxable accounts, the high payout easily triggers filing of Form 1116 (for US shareholders)
Decide how to dissect page 5.
The ex-div is either 03/24/23 or 04/04/23.
2022 Dividends
In accordance with the Companyās dividend policy, ZIMās Board of Directors declared a cash dividend of approximately $769 million, or $6.40 per ordinary share. Together with prior dividend distributions made on account of 2022, dividend distributions for the year totaled approximately 44% of the yearās net income. The dividend will be paid on April 3, 2023, to holders of ZIM ordinary shares as of March 24, 2023. Since the foregoing declared dividend amount per share constitutes more than 25% of the Companyās ordinary share price on the declaration date (March 13, 2023), per the instructions of the NYSE, the ex-dividend date with respect to this dividend distribution will be April 4, 2023. Shareholders who wish to receive the dividend must hold their ZIM shares until the ex-dividend date.
Also, had a queryā¦I remember you mentioned using Cabot options serviceā¦How do you rate those folks? What has been the performance in this last 1 and a half years?
I am sure everyone was a genius till Jan/feb 2021ā¦but since the debacle in 2022, it would be good to know if there are any good reliable services who have a high success rateā¦ Do you use any of their other services, other than options?
Thanks in advance
Peter
Years ago when I first started using their service, it was excellent. Then they spun off a high end service and ever since then it has not been very successful in my experience. I am getting ready to cancel the service. The high end service ($10,000.00/year) I canāt speak toā¦doc
Ahhh, that is the catch. But even at 74% that is one nice dividend and I noticed they have paid a pretty nice dividend for the past two years. If I had this in my Roth would I need to be filing an 1116? Can I file an Israeli Tax return and get my WH back?
@JimA759s - If one is making ZIM an income play, that withholding does represent a challenge. But, if ZIM is a holding within the context of a portfolio, the withholding just represents something on the tax side, most of which can offset other taxable gains.
Regarding ZIM as a Roth holding - I am not aware of a way of avoiding the withholding, or reclaiming it. Contrast this to a Canadian stock e.g. BNS in a Roth ac. The Canadian tax authorities exclude withholding on BNS if shares are/were purchased in a Roth ac. So BNS (and other Canadian stocks) does not pose the same challange as ZIM
To be frank, I was sort of giggling when I asked about the Israeli Tax Refund. I was thinking of it as an income play; but since I never sell anything it would be a ātill death do us partā kind of play. But Iām a bit more concerned about Israel recently and so will probably stay away.
The big event is done - ZIM paid their hefty Q4 2022 dividend today. As alluded to earlier in the thread, this was a special case where one needed to still own shares today, to get the dividend. I hedged my bet by trimming my ZIM position yesterday. Sure enough those shares did not qualify for the dividend.
ZIM shares held up quite well after trading ex-div. Company has a lot of cash. Letās see how ZIM manage thru the uncertain times.
I purchased ZIM in 2021 and the dividends have paid for the stock. They stopped the dividend for this quarter, but the company is well managed and making good moves in the industry. The stock is near its 52 week low with a 52 week high of 53.59. Iām anticipating both capitol gains and awesome dividends. Iāve set a buy limit at 12.28 to add more to my portfolio.
I took my lumps and dumped most of my ZIM shares in Apr-May 2023.
While shares may re-trace lower, I think ZIMās current cash position lends support to the share price at these levels. ZIM might not pay another div in calendar year 2023. But, if the container shipping sector gets better visibility, things may look up in early 2024.
I thought I had commented on Q1 2023 results. Browsing this board I donāt see a ZIM Q1 thread. The big item for Q1 2023 was that ZIM swung to a loss in Q1. Thus, no Q1 2023 div. Given the absence of a Q1 2023 results thread, I will post a thread on Q1 2023 soon.