Summer Q&A: 48% Dividend Yield, FinTech, Small Cap Energy Stocks

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 30 July 2022

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

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Summary

You've got question so we rounded up a wide range of Fools with some answers! In this summer mailbag we’re answering listener voicemails and emails about: - Whether a stock paying a 48% dividend yield is real or a mirage - Lesser-known energy and tech companies that may be worth your attention - How the student-loan pause is impacting SoFi - Saving in a 401(k) and being a stock investor Got a question for the show? Leave us a voicemail at 703-254-1445. Stocks mentioned: MDB, SOFI, STEM, ZIM, FLNC, ENPH Host: Chris Hill Guests: Robert Brokamp, Tim Beyers, Matt Argersinger, Matt Frankel, Jim Mueller Producer: Ricky Mulvey Engineers: Rick Engdahl, Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey Chris, it's Kevin from Connecticut. I'm interested in learning about the green energy sector,
0:05.3	specifically STEM and Fluence Energy and maybe a little end phase too. All right, thank you guys.
0:17.5	Hey Kevin in Connecticut, it's Chris Hill. Great question and we've got a
0:21.3	Motley Fool Energy analyst lined up to answer it later on in the show. It's time to dip into the
0:27.2	full mail bag. Today we are answering the questions that you emailed or left on our voicemail.
0:32.8	It's kind of like a lightning round you might see on another investing show, except we're actually
0:38.3	going to take some time to answer your questions and we're not going to yell at you. First up,
0:43.2	Matt Argusinger answers a question about a shipping company paying investors a 48% dividend yield.
0:59.2	I love the show. My name's Nick. I'm calling from San Francisco. My question is I recently came across
1:06.8	ticker symbol ZIM integrated shipping services. I've never heard of it. It's out of Israel. The
1:15.6	dividend yield is 48.13%. An IPO in 2021, is it possible for a dividend to have a revenue
1:27.8	be that high? I bought half a share just to keep my eye on it. Love to hear some of your advice and your in-depth knowledge.
1:38.5	Thanks so much. Have a good one. Hey Nick, thanks for the question on ZIM integrated shipping.
1:46.8	Took a look at it and yeah, unfortunately that 48% dividend yield, which looks incredible,
1:52.5	is a bit of a mirage and let me explain. This is a Israeli-based company that are involved in
2:01.5	container shipping. What's happened is this business is just boomed because as we know as the
2:09.4	economy started to recover in 2020 and then really got going in 2021, freight rates have just
2:16.4	soared exponentially. So just put that in context. ZIM in 2019, so pre-pandemic, reported operating
2:25.4	profits of 114 million. In 2021, I couldn't believe this when I saw the number, they reported
2:32.8	operating profits of 5.8 billion. So they went from 114 million, which I would argue is probably
2:39.5	they're more normalized operating profit level to 5.8 billion and that's because the exponential rise in
2:46.8	freight rates fell right to the bottom line for the company. Their expenses didn't go up that
	...

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