Here’s How I Play ZIM Regardless Of Dividend Sustainability

Today I am covering ZIM shipping because I get questions on it constantly. To me, it boils down to dividend predictability, volatility in the shipping sector, and tax rates (look into ZIMs double tax).

Nothing beats earning a steady living in the market, and if you can manage to outperform the indexes in the process, so be it!

I am outperforming the indexes while still living off of stable dividends, despite recent shipping weakness.

This is due to position size management. We only keep a small amount in names like ZIM or GOGL due to the volatile nature of the shipping industry and unpredictability of the dividends.

You can still earn high dividends by keeping most of your money in high quality funds designed to track the indexes, but yet still pay an attractive dividend. This is my preferred strategy, at least, because it outperforms the market while allowing me to live financially free.

Shipping meets important needs for my portfolio due to its industrial classification and high dividend payouts. However, because of the risk in the sector, only a small amount should be owned relative to the rest of the portfolio. IMO!