Hi Everyone
We regularly reference financial charts and histories published free to the public on the wonderful Oxford Press website, DividendChannel.com. If you visit their site often, you end up registering which puts you on their newsletter distribution list. At the end of last week, they published a warning issue on the risks of high dividend stocks (those with yields exceeding 12%). They call them value traps as sometimes portfolio values drop on such stocks.
The first one of these I learned of was our industrial stock ZIM, a little Israeli shipping company that has paid us some great dividends. Since we got into it, we have seen prices fluctuate between $25 and $6/sh. China lock downs and Gulf war attacks on shipping have had a lot to do with price drops. But, with the courage of our convictions, we bought more when others were selling out. It has ranged from its highest dividend of $17 in March of 2022 when it was selling for $88/sh to $0 at $6.69/sh in Nov 2023.(actually we loaded up at $8/sh). But through research, we learned something the panicy sellers didn’t know:
- This sometimes Extreme Dividend “Value Trap” company was the 7th largest shipper in the world
- With $00000 long term debt
- Was making money during Covid lock downs from its thousands of container rentals (typically $1000+/mo. each)
- Covid could only interrupt the shipping business, not destroy it
- Wars in the Middle East actually forced longer but MORE PROFITABLE routes for cargo carriers
- Zim used the slow down to make major efficiency upgrades to its fleet
- Management is very clever at being profitable.
Similarly, our hedge fund investments some times sometimes react like value traps with swings in portfolio value. But there is one major difference, whether the markets are up or down, so far their history is that they are always MAKING MONEY AND PAYING GREAT DIVIDENDS TO US. So to average our costs down we bargain hunt the dips often highlighting them on these alerts.
Last week, even without a lot of 100% yielders, those of you with several of the Extreme dividend funds got paid really well. This weeks dividends are charted below:
YieldMax ETF’s
| Symbol | Frequency | Dividend | Yield % | Cost | Payment Date | ||
| CHPY | Weekly | $0.3730 | 35.07 | $54.69 | 7/10/25 | ||
| LFGY | Weekly | $0.4799 | 62.40 | $41.02 | 7/10/25 | ||
| SDTY | Weekly | $0.1900 | 21.81 | $45.15 | 7/10/25 | ||
| ULTY | Weekly | $0.1035 | 85.69 | $6.33 | 7/10/25 | ||
| BRKC | 4 weeks | $0.5029 | 13.24 | $49.24 | 7/10/25 | ||
| CRSH | 4 Weeks | $0.2156 | 56.91 | $4.99 | 7/10/25 | ||
| TSLY | 4 Weeks | $0.3873 | 65.00 | $7.67 | 7/10/25 | ||
| TSMY | 4 Weeks | $0.6378 | 50.37 | $16.71 | 7/10/25 | ||
| YBIT | 4 Weeks | $0.3812 | 46.36 | $10.74 | 7/10/25 | ||
Other Stocks We Watch
| Symbol | Frequency | Dividend | Yield % | Cost | Own By Date | Payment Date | ||||
| USOI | 4 Weeks | $2.48 | 53.811 | $55.39 | 7/22/25 | 7/25/25 | ||||
| SLVO | 4 Weeks | $1.06 | 15.7 | $80.85 | 7/22/25 | 7/25/25 | ||||
Again ULTY is paying very well for a fairly cheap price. I don’t understand why it has sustained such a low price. BRKC is new but if we don’t see improvement it might be removed.
Until next week,
Clint