5 Dividend Stocks With Over 5% Yield

2. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Dividend yield as of February 27: 14.27%

Number of Hedge Fund Holders: 43

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli shipping company with global operations. As of the end of February 2022, the company had returned 248% of gains to investors in the previous year, having gone public in January 2021 with gross proceeds of $217.5 million. Currently, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) pays an annual dividend of $10 per share. 

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is one of Israel’s largest container shipping companies, with over 100 vessels. In February, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) entered into a charter deal with Navios Maritime Partners L.P. (NYSE:PAC). For $870 million, the Israeli shipping company will charter and deploy five secondhand vessels across its global network, as well as eight newbuilds in Asia and Africa from Navios.

Insider Monkey’s data shows that 33 hedge funds held stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) at the end of the fourth quarter worth $784 million. At the end of the third quarter, 22 hedge funds held stakes in the company. With over 2.7 million shares of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), Marshall Wace LLP holds the largest stake in the shipping company. 

In the Q2 2021 investor letter of Evermore Global Advisors, the fund mentioned ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) and discussed its stance on the firm. Here is what the fund said:

“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 sizeable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”