🦉 Is the 49% Dividend Yield for ZIM Integrated Shipping For Real?
Global container shipping and logistics company ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) stock has rebounded. Its 49% dividend is a real standout. It makes one wonder why ZIM isn't a no-brainer buy for income investors. The problem is the underlying volatility of the stock and the shipping container industry and the fallacy of dividends. There needs to be a better understanding of the mechanics of how dividends work concerning the pricing of the underlying stock. It's the "other" problem with ZIM as a pure dividend play. The Misunderstanding of Dividends The other fundamental problem to understand regarding dividend stocks is that the dividend is not "free." Often, stocks drop in price by at least equivalent to the dividend price. .
Equity markets started the week strong, but the gains quickly faded under rising inflation, interest rate expectations, and a dwindling outlook for earnings. The latest news from Factset is that estimates for all quarters of 2023 are trending lower and the 1st half will see growth decline by more than 4.0%. In this light, it is incredible the S&P 500 has been able to rebound as it has.
This week brings reports from retailers including Target, Lowe's, and Kroger. So far, the takeaway is that volume sales continue to fade while inflation makes up the difference. Regarding the S&P 500, Monday's candle confirms resistance at the short-term EMA and has the index set up for a more significant decline. The target now is 3,900 with a chance of moving below that level to 3,800.
Global container shipping and logistics company ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) stock has rebounded. Its 49% dividend is a real standout. It makes one wonder why ZIM isn't a no-brainer buy for income investors. The problem is the underlying volatility of the stock and the shipping container industry and the fallacy of dividends. There needs to be a better understanding of the mechanics of how dividends work concerning the pricing of the underlying stock. It's the "other" problem with ZIM as a pure dividend play. The Misunderstanding of Dividends The other fundamental problem to understand regarding dividend stocks is that the dividend is not "free." Often, stocks drop in price by at least equivalent to the dividend price.
He found Apple at $1.49... Oracle at $0.51... Amazon at $46. Marketwatch called him "The Advisor Who Recommended Google Before Anyone Else." Now, investing legend Louis Navellier is revealing his Top 11 Stocks for 2023.
North Korean ruler Kim Jong Un called for stronger public solidarity behind his leadership to increase the country's grain production significantly, state media reported Tuesday, amid outside worries about the country's worsened food insecurity. Foreign experts say North Korea is experiencing a serious shortfall of food in the aftermath of COVID-19 border restrictions and a reported push for greater state control over grain supply. The experts say they've seen no signs of mass deaths or famine due to the shortfall. During a ruling Workers' Party meeting on Monday,...
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Florida Gov. Ron DeSantis on Monday signed a bill that gives him control of Walt Disney World's self-governing district, punishing the company over its opposition to the so-called "Don't Say Gay" law. The bill requires DeSantis, a Republican, to appoint a five-member board to oversee the government services that the Disney district provides in its sprawling theme park properties in Florida. "Today the corporate kingdom finally comes to an end," he said at a bill signing ceremony in Lake Buena Vista. "There's a new sheriff in town, and accountability will be the ...
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The Supreme Court is about to hear arguments over President Joe Biden's student debt relief plan, which impacts millions of borrowers who could see their loans wiped away or reduced. So far, Republican-appointed judges have kept the Democratic president's plan from going into effect, and it remains to be seen how the court, dominated 6-3 by conservatives, will respond. The justices have scheduled two hours of arguments in the case Tuesday, though it will probably go longer. The public can listen in on the court's website beginning at 10 a.m. EST. Where things stan...
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