-->

Is This 27% Yield Worth the Risk?

Post a Comment
Shield

AN OXFORD CLUB PUBLICATION

Wealthy Retirement

View in browser

SPONSORED

WOAH! I've Never Seen Him Do This Before...

Marc on stage
 

The Oxford Club's Chief Income Strategist Marc Lichtenfeld is so confident that this $7 stock has the potential to AT LEAST double over the coming year...

That today, he's gearing up to do a few things he has NEVER done before...

  1. For the first time in his 20-year career, he's going to tell you about a single investment he plans to personally invest thousands in... alongside YOU.
  2. To avoid any conflict of interest, he's going to give YOU a head start to get in... before he loads up on July 25.
  3. He's offering an IRONCLAD GUARANTEE to anyone who takes advantage of this opportunity.

Get the full details here...

What Can We Expect From This Favorite of Income Investors?

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

Dividend hunters have a love affair with Zim Integrated Shipping Services (NYSE: ZIM).

The last dividend paid in April was $6.40 per share, which equaled a 27% yield. That wasn't an annual number... That was the yield on the actual quarterly dividend. So you can understand why income investors are infatuated with this stock.

But then, as with most infatuations, reality sets in. That gorgeous girl you're obsessed with comes with a whole lot of baggage (see last week's Safety Net column for a real-life example). The car of your dreams that you just had to have needs a lot of repairs. And that 27% yielder stops paying a dividend.

That's right. Zim didn't cut its dividend. It omitted it.

SPONSORED

Could This Be the Secret to Doubling Your Money in the Market?

Want to know the secret to doubling your money - or more - in the next 12 months?

It's simple...

You MUST get in early...

Clock Breakingdown

✔️ BEFORE the mainstream media catches on...

✔️ BEFORE the stock becomes too expensive...

✔️ And BEFORE the real rally begins.

This under-the-radar $7 stock is the one I'm betting on for 2023...

But fair warning...

Your chance for a massive first-mover advantage disappears on July 25.

Zim's dividend is variable. The policy is to distribute 30% to 50% of net income to shareholders in dividends. In May, the company reported a net loss. No net income means no dividend.

As you can imagine, omitting the dividend leaves a mark on the dividend safety rating.

The shipping company is not projected to earn a quarterly profit again until the third quarter of next year.

Interestingly, free cash flow is projected to be substantial in 2023, coming in at $1.4 billion. If that winds up being the case, Zim could easily afford a dividend. However, its policy is based on net income, not free cash flow, so I wouldn't count on it.

How does a company lose money but generate millions or even over a billion dollars in free cash flow?

REVEAL ZIM'S DIVIDEND SAFETY
Investment U Conference 2024 at the Ojai Valley Inn & Spa in Ojai, California. Don't miss out!

Should You Get Out of Stocks Now?

A Shocking Announcement in August Could Send One Stock Rocketing Higher...

SPONSORED

The #1 Energy Passive Income Investment for 2023

It's not a stock, bond or private company...

But this little-known alternative investment could hand you BIG MONTHLY INCOME from the oil and gas surge in 2023.

CLICK HERE TO FIND OUT WHAT IT IS

Related Posts

There is no other posts in this category.

Post a Comment

Subscribe Our Newsletter