Interesting to buy stock can be ZIM

ZIM Integrated Shipping: Yielding Nearly 30% And Positioning Itself For The Future

ZIM is flush with cash from a booming container shipping industry.
The company recently initiated a dividend policy that could deliver a 15-30% yield for the next two years.
ZIM is also signing new charter agreements on eco-friendly vessels to expand its services and establish itself as a "global niche" shipper.

Expanding Capacity and Looking to Capitalize on Future Global Growth
ZIM has chartered new vessels through two agreements so far in 2022. The first is for three 7,000 TEU dual-fuel LNG vessels which will be newbuilt and delivered in 2024. These come in addition to the ten 7,000 TEU and ten 15,000 TEU dual-fuel LNG vessels under construction for Seaspan who will charter them to ZIM. The second new charter agreement is with Navios Maritime Partners (NMM) and includes five smaller secondhand vessels for immediate delivery on 4.5-year charters alongside eight 5,300 TEU wide beam newbuilds for delivery between Q3 2023 and Q4 2024 on 5.3-year charters. These newbuilds are “expected to be deployed in trades between Asia and Africa.”

The fact that these new vessels are explicitly designated for routes between Asia and Africa is notable and reflects ZIM’s forward-thinking and “position as a global-niche operator.” The company has also recently expanded its ZMI Service between the Indian sub-continent and Israel, Turkey, and Northern Europe as well as expanding regional services in South America.

Dividends Galore
ZIM’s new dividend policy, of paying out 20% of earnings each quarter with a higher “catch-up” dividend at the end of each year to bring the total payout to 30-50% of annual earnings promises to give the company a massive yield very shortly. Since the company has only paid one regular dividend of $2.50 in FY2021—the other dividend payment being a special dividend of $2.00—this year’s “catch-up” dividend can be expected to be extra high. With earnings expected to run around $38 per share for 2021, the total dividend payout this year should be somewhere between $11-19 per share. This means the payment following the company’s annual report—with a payout date sometime in April—could alone yield between 15 and 27 percent.