What do you think of Zim (US)?

Thanks for answering

I am long ZIM. The $2.00 dividend was a special dividend. They have since revised their dividend policy. They will pay 20% of net income each quarter (one so far) and then 30-50% of annual net income at the end of the 4th quarter (minus what has already been paid, but in this case, not including the $2 special dividend) - coming up likely March/April. They're in a great position short term and this upcoming dividend should be pretty good, but their cash will trail off once rates go back down to normal. When that is is anyone's guess but likely later in 2022 or 2023 (especially because that is when a lot of new ships will hit the water). One other thing to keep in mind is that the dividends are subject to a 25% Israeli withholding tax (even if held in your RRSP). You can theoretically get 10% of that back but the process seems pretty arduous.

Hey there,

So this one is a little messy. The company only paid out two dividends since it ipo'ed earlier this year. A $2.00 special dividend in September and $2.50 per share in December.

It is not immediately clear how they will proceed but it seems like their intentions are to distribute 30-50% of net income which is entirely sustainable. Will it be $2.50 each quarter? Not abundantly clear as the company has only had a couple of quarters of performance since going public. I'll say that at this point, there appears to be no immediate danger of the dividend, but I am also not clear if they intent to pay the same dividend every quarter, or will it be reset every quarter.

In terms of the business itself, you are correct that the outlook is pretty positive in this environment. I do like what i see but it is difficult to value since it doesn't have a full range of data available yet since it is a recent IPO. It really looks like a solid company that is well positioned to perform well in this environment.

Mat