🦉 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 tried to move higher for a 2nd day this week only to have the move reversed by midday. The price action is hopeful but weak in the face of mounting bearishness centered on inflation, interest rates, and their impact on the outlook for earnings. A report from Target confirmed again what everyone fears, the wave of strength brought on by the pandemic is fading quickly, and the pullback in consumer spending is about to begin.
The S&P 500 is at a critical juncture. If the index can not regain firm footing by the end of the week, it is in danger of a more profound decline. The action so far this week shows resistance at the short-term moving average and growing bearishness among short-term traders. In the even the index deepens its decline, the next targets for firm support are near 3,900 and 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.
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...
Dividend stocks come in all shapes and sizes. They all share the objective of providing income to their investors. Dividend stocks can provide a source of income in exchange for taking the risk of holding onto the underlying shares. They are suitable for retirees and investors looking for an extra source of income from their investment holdings. While most dividend stocks pay quarterly, some pay monthly. These stocks tend to fall into either real estate investment trusts (REIT), financing, or business development companies (BDC). Publicly traded REITs must distribute 90% or more of their operating income to shareholders as dividends. Capital appreciation is possible if entries are timed well, but depreciation is possible if you chase entries.
Louis Navellier designed one of the most valuable stock-picking algorithms on the market. A system so precise that it helped him find Apple at $1.49, Microsoft at 38 cents and Cisco at 47 cents. Now that system has helped him rank all five stocks in his latest report - 5 Bulletproof Retirement Stocks – a buy.
Conservative justices holding the Supreme Court's majority seem ready to sink President Joe Biden's plan to wipe away or reduce student loans held by millions of Americans. In arguments lasting more than three hours Tuesday, Chief Justice John Roberts led his conservative colleagues in questioning the administration's authority to broadly cancel federal student loans because of the COVID-19 emergency. Loan payments that have been on hold since the start of the coronavirus pandemic three years ago are supposed to resume no later than this summer. Without the loan r...
As the dust settles and markets digest a dire realization, housing markets - which seemed to be the focus for investors and home buyers alike during the 2020-2022 period - are becoming an area of peril for some residents following the largest decline in value since 2008. Investors would be well served to keep in mind that while the pie may have shrunk for the nation as a whole, some of its pieces have taken a bigger share of the feast, when the market undoubtedly recovers in due time these larger pieces will be right there to enjoy the excess of an upcycle. Regions shrunk and expanded Breaking down the preliminary results for the 2022 United States building permits survey by state, there are a couple of trends that become palpable if not highlighted on their own.
In the next 75 days, I predict Americans will face fuel shortages, widespread blackouts, empty grocery shelves, $1000 energy bills, drained retirement accounts… and a new crime wave.
Russian President Vladimir Putin ordered the border with Ukraine tightened Tuesday after several drones attacked inside Russian territory, including one that crashed just 100 kilometers (60 miles) from Moscow in an alarming development for Russian defenses. The drones caused no injuries but raised questions about the Kremlin's security more than a year after Russia's full-scale invasion of its neighbor. Moscow blamed Kyiv for the attacks. Ukrainian officials did not immediately claim responsibility, but they similarly avoided directly acknowledging responsibility ...
Flexible workspace company WeWork, Inc. (NYSE: WE) went public through a reverse merger with a special purpose acquisition company (SPAC) called BowX Acquisition Corp in September 2021. The company commits to long-term leases with building owners and undertakes extensive buildout and modernization to create contemporary and engaging full-service office environments. It then subleases the workspaces to companies and individuals. The concept and design were exceptional, but the company overleveraged itself, burned through cash, grew massive debt, and was susceptible to rising interest rates a...
Mexico's president announced Tuesday that electric car company Tesla has committed to building a major plant in the industrial hub of Monterrey in northern Mexico. President Andrés Manuel López Obrador said the promise came in phone calls he had Friday and Monday with Tesla head Elon Musk. It would be Tesla's third plant outside the U.S., after one in Shanghai and one near Berlin. López Obrador had previously ruled out such a plant in the arid northern state of Nuevo Leon where Monterrey is the capital, because he didn't want water-hungry factories in a region that suffers water shortages.
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