In this article, we discuss 5 dividend stocks with over 15% yield from Jim Simons’ Renaissance Technologies portfolio. If you want our detailed analysis of these stocks, go directly to Jim Simons’ Renaissance Technologies Portfolio: 10 Dividend Stocks With Over 15% Yield.
5. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Renaissance Technologies’ Stake Value: $118,838,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 22
Dividend Yield as of December 21: 19.43%
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a cargo shipping company that is considered to be one of the top global carriers from Israel. Renaissance Technologies, as of Q3 2021, increased its position in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) by 399%, holding 2.34 million shares, worth $118.8 million, representing 0.15% of the total securities at the hedge fund.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) posted strong Q3 results on November 17. The company announced earnings per share of $12.16, beating estimates by $2.83. Revenue for the quarter totaled $3.14 billion, outperforming estimates by $374.27 million. After the Q3 performance, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stock jumped 10% to $54.93.
One of the leading ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stakeholders from the third quarter is Abrams Bison Investments.
On November 17, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) announced a $2.50 per share interim dividend, payable on December 27. The dividend payout equals roughly 20% of the net quarterly income, and going into 2022, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is expected to distribute 30-50% of the total 2021 net income as dividends.
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.”
