03-20-2023, 10:44 AM
Hello everyone,
I need your advice. As I type this, ZIM sits at $23.325, and my purchase price is $23.0529, so I'm up a teensy weensy bit. The company is paying out its last great dividend of $6.40 per share soon. However, due to Israeli tax, the net dividend is only $4.80. However, I would expect the share price to drop the full $6.40 after it goes ex-div. The reason I say "last great dividend" is because for the last year, ZIM has paid out monster dividends. Now with shipping prices falling and the oncoming recession, it's quite likely that after the stock price is adjusted for the dividend, it might not reach back into the 20s for a while. The company's guidance is that they do expect to pay dividends throughout the recession, but at a much lower rate than they normally do.
Should I hold on and collect the dividend, or sell soon and purchase back sometime after ex-div?
I need your advice. As I type this, ZIM sits at $23.325, and my purchase price is $23.0529, so I'm up a teensy weensy bit. The company is paying out its last great dividend of $6.40 per share soon. However, due to Israeli tax, the net dividend is only $4.80. However, I would expect the share price to drop the full $6.40 after it goes ex-div. The reason I say "last great dividend" is because for the last year, ZIM has paid out monster dividends. Now with shipping prices falling and the oncoming recession, it's quite likely that after the stock price is adjusted for the dividend, it might not reach back into the 20s for a while. The company's guidance is that they do expect to pay dividends throughout the recession, but at a much lower rate than they normally do.
Should I hold on and collect the dividend, or sell soon and purchase back sometime after ex-div?