Zim Integrated Shipping Services

robertbanking

Hello everyone, hope everyone is having a nice weekend. Its raining here thats spoiled my plans to go cycling.

I was looking at the stock Zim Integrated Shipping which seems to have strong financials and a growing projected future cash flows. It has a dividend of 250c. Can anyone kindly advise what percentage the stock will drop on the ex dividend date please and how you calculate this? The stock price is currently at about 70.23 USD.

Any advice you can give i would be forever grateful please. Many thanks everyone and take care.

eskbanker

If there were no other factors affecting the stock price then it would drop by the value of the dividend, so in percentage terms that's just one figure divided by the other, i.e. 2.5/70.23 = 3.56%.

robertbanking

eskbanker said:

If there were no other factors affecting the stock price then it would drop by the value of the dividend, so in percentage terms that's just one figure divided by the other, i.e. 2.5/70.23 = 3.56%.

Thank you so much for getting back to me it means alot. If i held 100 stocks of this company it would pay $250 on the next dividend date. I appear to have miscalculated this i thought the stock may drop by around 25% on the dividend date? Is this accurate please 2.5/70.23 = 3.56%? Thanks again for getting back to me. 

Notepad_Phil

Yes, eskbanker is accurate.

The dividend per share would need to be near to $17.50 to result in a 25% drop in the share price.

Assuming that the dividend is the sole piece of information driving the share price then each share will fall by the dividend paid i.e. $2.50, so the percentage drop will be the 3.56% figure he mentions i.e. 2.5/70.23.

robertbanking

Thank you Notepad_Phil i understand this now, i appreciate your input here. Thats really kind of you. Many thanks indeed.