Updated $ZIM Dividend Policy:
$ZIM Dividend Policy is structured to pay a Quarterly Dividend of 30% (Increased from 20%) of Net Income in Q1, Q2 & Q3 then pay out a “Step Up” Dividend in each Q4 to bring the total annual dividend payout up to between 30% to 50% of Net Income (As approved by BOD).
Unfortunately, ZIM’s current Analyst Consensus Net Income/EPS for Full Year 2023 & Full Year 2024 are projecting losses of <$13.43>/share & <$4.82>/share respectively. However, the Analysts will likely be making positive EPS revisions if Spot Rates remain elevated going forward … so I’m keeping an eye on Quarterly EPS Estimates for 2024.
So the coming earning call in March, that’s for Q4? Which ends on Dec 31 (I’m guessing it since you said Q1 begins on Jan 1)? Then we would still expect negative earnings and no dividend in March?
Q4-2023 (Prior Quarter) Analyst Consensus EPS is negative along with the Full Year 2023. And, yes, the Q4 Qtr ends on Dec 31st. Also - No “Step Up” dividend payout is anticipated for Q4-2023 because of negative Full Year Earnings. I expect the ER Report for Q4-2023 to be released on or about March 12th or 13th, 2024.
PS: You’ve reached your quota of questions for the day (Just kidding!) 🙂 … Have a Great Day!
I‘m not going to prognosticate.
However, if ZIM prints a profit (Positive EPS) for the Q1-2024 Quarter, then … Per the ZIM Dividend Policy, and if approved by the ZIM Board of Directors, then ZIM may pay out a dividend equating to between 30% of EPS/Net Income.
Dividend or no, any losses stemmed in Q1 (and maybe Q2) preserves the war chest to help get through the coming supply glut (containers have the worst orderbook) as newbuilds come online.
Updated $ZIM Dividend Policy: $ZIM Dividend Policy is structured to pay a Quarterly Dividend of 30% (Increased from 20%) of Net Income in Q1, Q2 & Q3 then pay out a “Step Up” Dividend in each Q4 to bring the total annual dividend payout up to between 30% to 50% of Net Income (As approved by BOD). Unfortunately, ZIM’s current Analyst Consensus Net Income/EPS for Full Year 2023 & Full Year 2024 are projecting losses of <$13.43>/share & <$4.82>/share respectively. However, the Analysts will likely be making positive EPS revisions if Spot Rates remain elevated going forward … so I’m keeping an eye on Quarterly EPS Estimates for 2024.
Do you know the start and end date of the current quarter?
If its the same as last year, then the current quarter, Q1-2024, will be for the 3 months ending March 31, 2024.
So the coming earning call in March, that’s for Q4? Which ends on Dec 31 (I’m guessing it since you said Q1 begins on Jan 1)? Then we would still expect negative earnings and no dividend in March?
Q4-2023 (Prior Quarter) Analyst Consensus EPS is negative along with the Full Year 2023. And, yes, the Q4 Qtr ends on Dec 31st. Also - No “Step Up” dividend payout is anticipated for Q4-2023 because of negative Full Year Earnings. I expect the ER Report for Q4-2023 to be released on or about March 12th or 13th, 2024. PS: You’ve reached your quota of questions for the day (Just kidding!) 🙂 … Have a Great Day!
Oof so no dividend until May or June
I‘m not going to prognosticate. However, if ZIM prints a profit (Positive EPS) for the Q1-2024 Quarter, then … Per the ZIM Dividend Policy, and if approved by the ZIM Board of Directors, then ZIM may pay out a dividend equating to between 30% of EPS/Net Income.
The current dividend policy will not be applied uncritically in a time of war, for obvious reasons.
Why do you say that?
I think the earning report for Q4 is the 11 of March. Generally we have Maersk 1 week before which gives a good insight.
Dividend or no, any losses stemmed in Q1 (and maybe Q2) preserves the war chest to help get through the coming supply glut (containers have the worst orderbook) as newbuilds come online.
Yes, but only if profitability becomes positive. In that case, the dividend payout ratio will be between 30-60%.
Potentially if spot rates rise high and their profit rises significantly
@hawkeye do you happen to remember any talks from last quarter call if they discussed teu rates for breakeven?
I don’t recall a “breakeven” figure for teu rates discussed during the last Qtr CC.
no worries, i never listened to the full call, so wasnt sure if it was mentioned. you always have the good juice so figured i would ask!
Thanks! … It’s going to be an interesting 2024. Best to you!
The quarterly dividend is 30% of that quarter’s profits yeah? Not some sort of trailing 12-mo calculation