03-21-2023, 07:10 PM
(This post was last modified: 03-21-2023, 07:15 PM by ken-do-nim.)
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.
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.