03-22-2023, 10:32 AM
(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