I’m not sure why (high shipping costs?), someone can search to find out if they’re interested, but they paid a huge dividend in March 2022. As I mentioned, they don’t have a long track record but removing the outlier the average dividend has been $2.45. Annualising using this figure will give you an
($2.45 x 4) / $68.52 = 0.143 or 14.3%
Other things to consider.
Shipping rates have been at an all time high and will not stay this way for ever so it would be unlikely Zim could sustain this.
Israeli companies have a dividend withholding tax of 30% (25% if your a Israeli)
This is an important point. A double-digit yield should sound alarm bells. Far too many people piled into Evraz chasing a high yield without really considering the risks. I’d rather hold ‘Steady Eddy’ stocks such as Diageo and Relx which yield 2-3% and are less volatile – after all, total return is what matters.
Monevator has some good guides about building a high-yield portfolio. Parts will be out of date now but, if I remember rightly, they walk you through most of the factors you should consider such as dividend yield, cover, growth record, debt, size of company, and sector diversification.
Yes I was one of those who got burned by Evraz. It was about a 20% dividend yield rather than the ludicrous figure of 70+ it became when the shareprice collapsed but still. I knew it was a risk at the time so I thankfully only put £60 or so into it.
Persimmon is 11% which is about my limit now. I’ve got others around the 9.5% mark but I look at their balance sheet first to see exactly how well they are doing, especially how much cash they have as well as how much debt and their liabilities to net asset ratio. Even a profitable company can go under if it runs out of cash.
It is also worth looking at how “shorted” a stock is. If it has a high shorting score (what % of shares are being bought and sold to short the stock), that means the highly skilled investors who engage in shorting are betting on the stocks going down. Persimmon has a score of 0.6. I couldn’t find anything definite about Zim shipping but I saw a figure of around 6.5% in one result, which isn’t massive but should still give pause for thought. It’s worth remembering that Carillion massively increased their dividend and became up to 30% shorted before they went under.
I would be unlikely to touch Zim Shipping for the suspicious dividend yield alone. You could make the price of the share in under 3 years, but you’re gambling on that new company still being around then. Lenny and NeilB mention other reasons to be careful and the Israeli tax of 30% would be the last straw that would make me look elsewhere. Interestingly, I couldn’t find it when I looked at the FreeTrade app.
Hi @neilrsmith Freetrade include ALL dividend while some places will only count Interim and Final dividends, this filters out special dividends which aren’t repeated.
Following on from the previous comment how often the Dividend data gets refreshed on the app?
Likewise the ‘new’ analyst ratings is all well and good but without a timeframe around when it was last updated hard to judge how much attention to pay it.
Just recently started setting up a dividend portfolio, just wondering what peoples strategies were in terms of reinvesting, is it best to reinvest into the stock that paid the dividend ( + balance out average price after the expiration-dividend drop) or diversify by buying another stock.
As with most answers to questions re finance, I guess the best answer is ‘that depends’.
I’m a big fan of compounding, so I will try and reinvest my dividends into the companies who pay them, but first I will check if I feel that company is still a good investment. I then will look to see if there are any other stocks that I should diversify with, using research tools that you can get on the web. I’ll also look at my existing portfolio to see if I can better use the dividend elsewhere.
Also with some of my dividends, the payout is not enough to buy another share with in the same company, so I will then have to look across my portfolio to see the next best target. Or alternatively keep the divi as cash until the next one, by when I might be able to buy another share in the same company.
So not really a direct answer to your question, but more a list of what you can do (and indeed what I actually do). It’s all part of the fun and interest in investing.
I tend to ignore whichever stock paid it out and look at what would be the best investment at the time. Normally I look for good and solid stocks in my portfolio that happen to be red to get my average down, or anything that is a good buy and looks like within range of the ex-dividend date. Sometimes I will even look at when the ex-dividend date for certain stocks is and look for a bargin there. Like TheRaven says, “that depends”.
Question: Somebody on one of the dividend threads here mentioned a fund which pays a monthly dividend, it is a dividend growth fund. Not too sure if the actual fund/trust was on Freetrade itself, does anyone know which one I mean?
DEC diversified energy is a great shout. Very consisent in paying and good return rates of about 10% over the year. One to watch at the moment because share price is high due to oil prices. Luckily i bought in a fair time ago so its doing well for me.
Also rio tinto, polymetal (when you can trade again) although you can still buy via Hargreaves and also M&G and Persimmons
They are all good.
US stocks wise try GOGL, ZIM and SSSS and Icahn.
They are all regular and consistent. I am a true believer in all of these.
Without the over inflated oil price it will return to where it used to be. It is there that it remains relatively stable. Ive always had it as a big chunk from the first day i started.
It depends on the company you’re investing in. Are you familiar with what ex dividend is? You can find out when a company’s shares go ex dividend on sites like dividenddata.co.uk, its basically when that company looks at their shareholder register and pays a dividend to those who were listed when the share goes ex dividend. How long after the ex dividend date they pay though varies by each company.
but as a fund I’m not sure 
