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(03-21-2023, 07:10 PM)ken-do-nim Wrote: I sold out of ZIM today, which is weird because I really believe in the company. However, my gamble is that the shares will be much cheaper on April 4th, the ex-div date, and I will repurchase then and lower my cost basis.
On the last ex-div date of November 28th, the stock fell from $25.67 to $21.21, and the div was $2.95/share, which is really only $2.22 per share because of the 25% foreign tax taken out right away. I believe April 4th will have a similar over-sized drop, due to fears that the dividend will either be greatly reduced or suspended altogether for the balance of '23 due to the recession; fears I believe are overblown. This time the dividend is a massive $6.40/share, $4.80 after foreign taxes. It is obviously a bit scary to voluntarily forgo a $2880 cash payment, which would have been the largest single dividend I've ever received by far, so only time will tell if this move pays off.
It makes no difference you still come out the same 
If you held you would have gained extra shares or the 2.22 depending on your account setup. And if drops you could have added more
My personally don't get in and out of stocks just because it will fall on ex dividend day.
And ZIM is a risky investment anyway especially in a rate sensitive environment. 16.90 % yield. That's telling you to stay away
Initial position in OXY today.
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Loaded on Mtb today. One of the best run banks.
Added schw, usb.
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(03-22-2023, 10:32 AM)Mr1share Wrote: And ZIM is a risky investment anyway especially in a rate sensitive environment. 16.90 % yield. That's telling you to stay away
Just to be clear, ZIM doesn't have a guaranteed yield, and I don't know where you got the 16.90% figure from. It merely pays a percentage of its profit to shareholders. No profit, no dividend. And yes, shipping rates fluctuate, but the core business model is sound, so sometimes it is feast and sometimes it is famine with respect to the dividend. We are coming out of a feast period and entering a famine period, relatively speaking.
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(03-23-2023, 05:42 AM)ken-do-nim Wrote: (03-22-2023, 10:32 AM)Mr1share Wrote: And ZIM is a risky investment anyway especially in a rate sensitive environment. 16.90 % yield. That's telling you to stay away
Just to be clear, ZIM doesn't have a guaranteed yield, and I don't know where you got the 16.90% figure from. It merely pays a percentage of its profit to shareholders. No profit, no dividend. And yes, shipping rates fluctuate, but the core business model is sound, so sometimes it is feast and sometimes it is famine with respect to the dividend. We are coming out of a feast period and entering a famine period, relatively speaking.
Then your not doing your homework lol. If you take out the payout ratio you will have a yield of over 16%. This company pays dividends you never know what your getting lol. They also paid a special $17 dividend last year. Not my kind of investment. I want companies that continue to pay out and raise dividends. Plus this company is full of debt. And its a Israel company and I stay away from investments that doesn't do business in the US.
I may just but the puts and prosper when this thing crashes on ex dividend day
New positions in CAH, NEM and added JNJ and CI
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(03-23-2023, 09:08 AM)Mr1share Wrote: (03-23-2023, 05:42 AM)ken-do-nim Wrote: (03-22-2023, 10:32 AM)Mr1share Wrote: And ZIM is a risky investment anyway especially in a rate sensitive environment. 16.90 % yield. That's telling you to stay away
Just to be clear, ZIM doesn't have a guaranteed yield, and I don't know where you got the 16.90% figure from. It merely pays a percentage of its profit to shareholders. No profit, no dividend. And yes, shipping rates fluctuate, but the core business model is sound, so sometimes it is feast and sometimes it is famine with respect to the dividend. We are coming out of a feast period and entering a famine period, relatively speaking.
Then your not doing your homework lol. If you take out the payout ratio you will have a yield of over 16%. This company pays dividends you never know what your getting lol. They also paid a special $17 dividend last year. Not my kind of investment. I want companies that continue to pay out and raise dividends. Plus this company is full of debt. And its a Israel company and I stay away from investments that doesn't do business in the US.
I may just but the puts and prosper when this thing crashes on ex dividend day
I bet the put premiums will change your mind. I wish it was this easy.
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Added CI, SHW, UNP, NKE & repurchase MDT (shares were called away)
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03-23-2023, 02:14 PM
(This post was last modified: 03-23-2023, 02:14 PM by kblake.)
Bought a basket of banks. I love when the market gives us opportunities. Most of lower then pre-covid lows. Just make sure you buy the ones that will survive, have low debt and a great CEO in place.
USB, PNC, MTB, SCHW, BAC and COF
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Added more Mtb and a bit schw.
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