It's true... Zim Integrated Shipping (NYSE: ZIM) has paid out $27.10 in dividends over the past year, and the stock currently trades at around $27. But can shareholders expect to receive the same amount going forward? Absolutely not. Management stated that in the first three quarters of the year, it will pay out 20% to 30% of net income, with a possible step-up to 50% of annual net income in the fourth quarter. That means next year, a dividend cut is almost a sure thing. In 2022, Wall Street expects the company to earn $40.07 per share. But for next year, that forecast drops to $8.13, followed by another decline in 2024 to $3.03. Even if Wall Street gets it very wrong and earnings next year and in 2024 are triple what analysts forecast, the dividend will still come down sharply. |
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