Is ZIM a Good Shipping Dividend Stock to Buy Now?

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is included among the 10 Best Shipping Stocks with Dividends.

Is ZIM a Good Shipping Dividend Stock to Buy Now?

A fleet of vessels docking at a busy harbor, signaling the company’s presence in global marine shipping.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) ranks among the major players in the cargo shipping industry, operating a fleet of over 130 vessels, including large container ships that move goods for manufacturing and retail clients.

Although the shipping sector tends to follow a boom-and-bust cycle, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) benefits from having a comparatively modern fleet, which helps reduce fuel consumption and maintenance expenses. In addition, the company holds a strong presence on key global trade routes, particularly those connecting Asia and Europe.

In the first quarter of 2025, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) reported a strong cash position. The company’s operating cash flow for the quarter came in at $855 million, up from $326 million in the same period last year. Its free cash flow also grew from $787 million to $303 million from the prior-year period. During the quarter, it returned $89 million to shareholders through dividends. The company currently pays a quarterly dividend of $0.74 per share.

While we acknowledge the potential of ZIM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZIM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.