While the shipping industry suffered major losses at the beginning of the pandemic, the supply chain shortage created a huge demand for shipping amid the reopening of the economy last year. Surging consumer demand increased inventory levels, and rebounding international trade boosted the industry’s growth. According to a CNBC report, the supply chain crisis will likely ease in the second half of 2022.
However, the shipping industry is still expected to see gains in 2022. IMARC Group expects the global shipping container market to grow at a CAGR of 4.6% between 2021 and 2026.
Along with the industry’s solid rebound, investors’ interest in dividend stocks to ensure a steady income stream amid a volatile market helped some dividend-paying shipping stocks perform exceptionally well last year. High dividend-yielding shipping stocks ZIM Integrated Shipping Services Ltd. (ZIM) and Grindrod Shipping Holdings Ltd. (GRIN) gained more than 300% in 2021. So, it could be worth adding these stocks to your watchlist.
ZIM Integrated Shipping Services Ltd. (ZIM)
Headquartered in Haifa, Israel, ZIM and its subsidiaries provide container shipping and related services in Israel and internationally. It operates a fleet of 101 vessels with a global network of 69 weekly lines.
On November 17, 2021, Eli Glickman, ZIM’s President & CEO, said, “Reflecting ZIM's strong outlook and extremely positive container liner market fundamentals, we have once again raised our full-year 2021 guidance. As an innovative digital leader of seaborn transportation and logistics services, we are well positioned for the future.”
The four-year average dividend yield for ZIM is 1.82%, its current dividend translates to a 4.58% yield. It paid a $2.50 per share quarterly dividend on December 27, 2021.
ZIM’s income from voyages and related services increased 209.7% year-over-year to $3.14 billion for the third quarter ended September 30, 2021. Its profit for the period came in at $1.46 billion, up 913.1% year-over-year. Also, its EPS came in at $12.16, up 794.1% year-over-year.
Analysts expect ZIM’s revenue to increase 161.4% year-over-year to $10.43 billion in fiscal 2021. Its EPS is expected to grow 619.7% year-over-year to $36.13 in fiscal 2021. In addition, it surpassed Street EPS estimates in three of the trailing four quarters. The stock returned 388.5% in 2021.
Grindrod Shipping Holdings Ltd. (GRIN)
Based in Singapore, GRIN is an international shipping company that owns, charters-in, and operates a fleet of dry bulk carriers and tankers worldwide. It operates a fleet of 23 owned dry bulk carriers and eight long-term chartered-in dry bulk carriers.
GRIN’s current dividend translates to a 4.13% yield, and its four-year average yield is 0.13%. For the fiscal third quarter ended September 30, 2021, GRIN’s cash and bank balances came in at $78.45 million for the period ended September 30, 2021, compared to $41.26 million, for the period ended December 31, 2020.
In addition, the company’s total assets came in at $627.04 million, compared to $622.1 million, also for the same period. Moreover, its total current liabilities came in at $101.8 million, compared to $117.9 million, for the same period. The stock returned 329.3% last year.
ZIM shares were trading at $56.36 per share on Thursday afternoon, up $1.74 (+3.19%). Year-to-date, ZIM has declined -4.25%, versus a -1.29% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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