2. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 33
Dividend Yield as of March 2: 14.19%
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a leading global carrier based in Israel, that provides container shipping, refrigerated cargo, and logistics services. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) delivers a yield of 14.19% as of March 2.
On November 17, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) declared a $2.50 per share interim dividend. The dividend was paid on December 27, which reflects approximately 20% of the quarterly net income. In 2022, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) will distribute 30-50% of its total net income for 2021.
On January 28, Jefferies analyst Randy Giveans raised the price target on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) to $100 from $80 and kept a Buy rating on the shares, which he added to the firm’s “Franchise Picks” list after the company increased its Q4, 2022, and 2023 EPS estimates as container freight rates remain at all-time highs. The company’s new contracts will boost revenues in the second half of 2022 and ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is set to distribute a “large” annual dividend in March, followed by quarterly dividends of 20% of earnings, the analyst told investors.
A total of 33 funds were bullish on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) during Q4 2021, up from 22 funds in the earlier quarter. Marshall Wace LLP held the largest stake in the company, with 2.70 million shares worth $159.3 million.
Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
