....or just set up your own US trading account...?
Just need to get around the W8BEN forms etc.
Just need to get around the W8BEN forms etc.
High Yielding Shares Again
- Thread starter MTR
- Start date
Vts
Yes, Harro is correct.
VTS is an ASX listed ETF. It has management costs of only 0.05%. It is unhedged, so any variation in the AUD/USD rate will affect the price of VTS units.
The dividends do attract a 15% withholding tax. This makes the investment quite different to an Australian ETF, which will have some franking credits attached to each dividend.
Yes, Harro is correct.
VTS is an ASX listed ETF. It has management costs of only 0.05%. It is unhedged, so any variation in the AUD/USD rate will affect the price of VTS units.
The dividends do attract a 15% withholding tax. This makes the investment quite different to an Australian ETF, which will have some franking credits attached to each dividend.
I think it's useful and interesting to compare yourself to a benchmark index, but remember we are not like many fund managers or institutional investors where their paycheck may be dependent on how well their investment portfolio "tracks" against a benchmark index.
As individual investors I think the main thing is to determine what your overall objectives are and to invest in a way that allows you to achieve this.
If you want your investments to generate an income to live off and pay bills, then whether or not you beat a particular benchmark index return in a particular year is not necessarily going to make it any easier for you to do this.
If you want your portfolio to generate 50k pa, and at present it is only generating 30k pa, then you are under-performing according to your particular objectives which meet a specific need, or "liability" I think is the industry term, and this seems more relevant to me.
Whether on not that results in you beating the index or not may not be that relevant in the scheme of things.
And if you are not interested in income right now, and just want to focus on the total return, remember that at some point your objectives may change and your current setup may not allow you to meet your future objectives/liabilities that easily.
That being said, if you have several millions invested, then it doesn't really matter!
For someone starting out on investing in equities markets this would be a good start..imho..
http://learn.nabtrade.com.au/20wise
http://learn.nabtrade.com.au/20wise
This is absolute gem of a thread with a lot of great input and attachments for further reading. Could almost make a book out of this thread alone. Thanks to all the contributors.
There has been talk of problem tenants and management hassles with RIP. I agree with see change that the better quality properties mitigate that risk. My Sydney properties in randwick, clovelly and Leura have had minimal tenant issues in the last 10 years. That's another great advantage of buying "blue chip". A 50/50 mix of quality income from quality tenants and share dividends is the goal for me. Doesn't make for exciting talk around the BBQ which is another KPI for me.
There has been talk of problem tenants and management hassles with RIP. I agree with see change that the better quality properties mitigate that risk. My Sydney properties in randwick, clovelly and Leura have had minimal tenant issues in the last 10 years. That's another great advantage of buying "blue chip". A 50/50 mix of quality income from quality tenants and share dividends is the goal for me. Doesn't make for exciting talk around the BBQ which is another KPI for me.
TPI, I am not sure I understand what you are advising here. May be I wasn't clear. For me the overall objective is always to receive maximum total returns with minimum risks. Now, I am not too fussed whether those returns are achieved via income or CG or both. I can adjust accordingly to suit my needs, just give me the maximum total returns.
You do not need to beat the index every month, quarter or year if you are having your own investing strategy. But to make sure you beat it over the long term. Even Buffett fails to beat his benchmark S&P500 index every year. He measures his performance on a rolling 5 year basis.
Based on the above if you fail to beat market returns using your own investment strategy should you not re-considering whether it's worth pursuing such a strategy? Surely, even if my objective is to make $50K income per year would it be wise to stick to that strategy even if that means you accept lower returns than the market? Had you invested in index fund you might have received $60K return consisting of 40K income and 20K CG. You can easily sell 10K worth of shares (one of the pros of shares compared to property) and get your $50K income that you need and have the remaining 10K invested compounding.
Hence, my argument against devising your own strategy if it fails to beat passive, no effort indexing.
Hope I explained it better this time.
Cheers,
Oracle.
The main reason people lose big on the share market with a quality blue chip portfolio is that they sell when the entire market gets spooked (ala GFC) when there is nothing otherwise fundamentally wrong with those blue chip companies. Compared to property, you need to have a strong stomach for volatility and just ride out such equity storms to be successful with shares.
After an 8 year cyclical bull run, I am playing things quite boring at the moment.
Margin loan is low by historical measures and I also have a cash buffer of 15 % in different countries making me squat all (I prefer a cash buffer and margin loan together, if I cancelled the cash then the loan would be much smaller but that's just me)
My High Yielding Securities Currently are:
Reckon
MYOB unsecured notes
Prime Media
Seven West Media
Cabcharge
Myer (just entered today)
Programmed Maintenance
Alliance Aviation (entered a week ago)
Mc Millan Shakespeare
Asian Data Centre REIT
Growthpoint Property REIT
Folkestone Social Infrastructure Trust
Overseas high Yielding:
Bank of China
Industrial and Commercial Bank of Chin
Agricultural Bank of China
China Merchants Bank
CTC Media (Russian Media Company if you have never heard of it)
Hope this might be of some use
Margin loan is low by historical measures and I also have a cash buffer of 15 % in different countries making me squat all (I prefer a cash buffer and margin loan together, if I cancelled the cash then the loan would be much smaller but that's just me)
My High Yielding Securities Currently are:
Reckon
MYOB unsecured notes
Prime Media
Seven West Media
Cabcharge
Myer (just entered today)
Programmed Maintenance
Alliance Aviation (entered a week ago)
Mc Millan Shakespeare
Asian Data Centre REIT
Growthpoint Property REIT
Folkestone Social Infrastructure Trust
Overseas high Yielding:
Bank of China
Industrial and Commercial Bank of Chin
Agricultural Bank of China
China Merchants Bank
CTC Media (Russian Media Company if you have never heard of it)
Hope this might be of some use
That?s not really going to work... you?ve got to take some risk to get some return - in property or stocks. The risk is similar, though more chance of losing the lot in property because of the increased leverage. Property and stock losses in the GFC were similar but stocks have recovered quicker.
Sure, but?
How can it be an 8 year bull run if the bottom of the GFC was Feb/March 2009? And the top of the previous run was Nov 2007?
See ya's.
it's in black and white for everyone to see,the only ones to make any money were the ones that have held,not saying the prices will stay this high but it is a interesting chart,where you see the difference between sensational and the empirical..imho..
good pick-up.
That's what happens when one types after being awake too long.
I meant every 8 years or so will some form of crash somewhere, that has a ripple effect through global markets, some sever some minor.
We are now in year 6 (including 2009, since 2009 ended up being a good year to be invested)
Hi Oscar
I take your point and lucky you
, however there is never any guarantees of perfect tenants due to area. Have been investing in property for over 12 years now and during this time only had 2 bad tenants last year , 1 in State housing area and the other in middle class area. My strategy has been to predominately invest in State Housing areas where rezoning is occurring. So perhaps those stats are not that bad, don't want a repeat of this that's for sure.In USA where I have 8 properties have had 4 bad tenants in 3 years
You can not claim insurance, if you do no one will ever insure you again. Insurance is purely if the house burns down etc. This all happened in year 1, the last 2 years have been brilliant, great income, around 20% gross. Back to shares, I am also enjoying this thread, lots of very useful information. Brain going into overload.
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Great thread.
My current share strategy is mainly investing in Vanguard VHY ETF. I chose this fund because it provides an acceptable yield, but still generally tracks the performance of the broader ASX so has a reasonable capital growth rate. For me it's the appropriate balance between yield and growth.
I am slightly more yield than CG focused with shares as it fits in with my overall strategy, resi IP's for growth and some eventual cashflow when i'm more positively geared in the future, and shares for a higher and less hassle income stream over the long term. There's something reassuring about slowly seeing a regular stream of dividends push higher and higher every quarter, which allows you to replace employment income with dividends.
I purchase quarterly, not on a particular date but generally try and pick a quarterly low, if it gets towards the end of the quarter and the market is moving upwards i'll still purchase, as my strategy involves dollar cost averaging, dividend reinvestment and a slow and steady approach.
I enjoy shares but not to the point where I constantly want to be researching to try and pick individual performers, so a passive approach suits me for now, and I find a low cost ETF suitable for this style.
My current share strategy is mainly investing in Vanguard VHY ETF. I chose this fund because it provides an acceptable yield, but still generally tracks the performance of the broader ASX so has a reasonable capital growth rate. For me it's the appropriate balance between yield and growth.
I am slightly more yield than CG focused with shares as it fits in with my overall strategy, resi IP's for growth and some eventual cashflow when i'm more positively geared in the future, and shares for a higher and less hassle income stream over the long term. There's something reassuring about slowly seeing a regular stream of dividends push higher and higher every quarter, which allows you to replace employment income with dividends.
I purchase quarterly, not on a particular date but generally try and pick a quarterly low, if it gets towards the end of the quarter and the market is moving upwards i'll still purchase, as my strategy involves dollar cost averaging, dividend reinvestment and a slow and steady approach.
I enjoy shares but not to the point where I constantly want to be researching to try and pick individual performers, so a passive approach suits me for now, and I find a low cost ETF suitable for this style.
Thanks for sharing these little tips
For those that have the listed vanguard funds how do you manage liquidity?
Looking at VSO it hasn't had a single trade today and most of the other ones are very low turn over.
Looking at VSO it hasn't had a single trade today and most of the other ones are very low turn over.
Good thread.
Will be selling up paid out PPOR and downsizing to one about 25% of current value shortly. Will be looking to place a good portion of the freed up cash into shares gradually over a period of approx 3-5 years.
What I'm interested in from my research so far:
Focus will be on shares with yield from dividends that grow each year and faster than inflation together with expected capital price appreciation. Especially interested in what seems to be termed as Dividend Growth Investing in the US as espoused by the authors David Fish, David Crosetti, Chuck Carnevale (especially), David Van Knapp, Bob Wells, Chowder, Dividend Mantra, Regarded Solutions, Tradevestor, Dividends4Life, Sure Dividend, Tim McAleen Jnr etc on www.seekingalpha.com
There are a number of shares that have grown their dividends each and every year (some for more than 50 years), Dividend Champions (25+ years), Contenders (10+), Challengers (5+) they can be found at www.dripinvesting.org
They include well known global companies such as:
Coca Cola, Pepsi, Wal-Mart, Walgreens, Clorox (think Glad wrap in Aus), McDonalds, General Mills, IBM, Kimberley Clark, Procter & Gamble. 3M, ExxonMobil, Chevron, Altria (Ex Phillip Morris) etc.
I'm interested in international shares from a mix of countries for a number of reasons:
I may wish to retire (12 years or so) to another country , so don't wish to be negatively affected by any single currency. I have seen what the sustained high dollar and suffering pound have meant for my parents who have immigrated from the UK recently.
There are lots of great companies based in different countries, not just Aus or US.
I find Aus companies limiting; we don't seem to have many dividend champions.
Once an Aus company gets to a certain size it seems to be gobbled up by an overseas company.
Apparently Aus companies account for only 2% of the world market.
Here in Aus I will enjoy the higher dividends and the franking benefits and a good portion will be placed into the good old fashioned low fee LICs (Argo,AFIC, AUI., DUI MIR etc).
In UK interested in investment trusts such as this one https://www.henderson.com/ukpi/fund/169/the-city-of-london-investment-trust-plc
Low fees, 45+ years of growing dividends and a who's who list of holdings.
Went to a one day talk by Peter Thornhill of www.motivatedmoney.com.au some years ago and got his book of the same title. It has been mentioned here before and I enjoyed/recommend it.
I would be interested to know if anybody can recommend further research materials based on my interests above.
Will be selling up paid out PPOR and downsizing to one about 25% of current value shortly. Will be looking to place a good portion of the freed up cash into shares gradually over a period of approx 3-5 years.
What I'm interested in from my research so far:
Focus will be on shares with yield from dividends that grow each year and faster than inflation together with expected capital price appreciation. Especially interested in what seems to be termed as Dividend Growth Investing in the US as espoused by the authors David Fish, David Crosetti, Chuck Carnevale (especially), David Van Knapp, Bob Wells, Chowder, Dividend Mantra, Regarded Solutions, Tradevestor, Dividends4Life, Sure Dividend, Tim McAleen Jnr etc on www.seekingalpha.com
There are a number of shares that have grown their dividends each and every year (some for more than 50 years), Dividend Champions (25+ years), Contenders (10+), Challengers (5+) they can be found at www.dripinvesting.org
They include well known global companies such as:
Coca Cola, Pepsi, Wal-Mart, Walgreens, Clorox (think Glad wrap in Aus), McDonalds, General Mills, IBM, Kimberley Clark, Procter & Gamble. 3M, ExxonMobil, Chevron, Altria (Ex Phillip Morris) etc.
I'm interested in international shares from a mix of countries for a number of reasons:
I may wish to retire (12 years or so) to another country , so don't wish to be negatively affected by any single currency. I have seen what the sustained high dollar and suffering pound have meant for my parents who have immigrated from the UK recently.
There are lots of great companies based in different countries, not just Aus or US.
I find Aus companies limiting; we don't seem to have many dividend champions.
Once an Aus company gets to a certain size it seems to be gobbled up by an overseas company.
Apparently Aus companies account for only 2% of the world market.
Here in Aus I will enjoy the higher dividends and the franking benefits and a good portion will be placed into the good old fashioned low fee LICs (Argo,AFIC, AUI., DUI MIR etc).
In UK interested in investment trusts such as this one https://www.henderson.com/ukpi/fund/169/the-city-of-london-investment-trust-plc
Low fees, 45+ years of growing dividends and a who's who list of holdings.
Went to a one day talk by Peter Thornhill of www.motivatedmoney.com.au some years ago and got his book of the same title. It has been mentioned here before and I enjoyed/recommend it.
I would be interested to know if anybody can recommend further research materials based on my interests above.
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No income for now. Will be re-investing dividends for the next twelve or so years until retirement. I figured the youngest kid doesn't leave school til then so no point in retiring earlier, may as well re-invest divvys and live off job/business earnings til then. The idea is to build a portfolio that I can keep in retirement and switch to taking the divvys as income, hopefully without the need to sell any of the holdings.
Property.....The other portion of freed up cash will go towards property and cash - just not sure in what proportion. I like the idea of commercial (have enjoyed Dazz'z posts (disappointed to see him banned ), but not it's lack of liquidity. Residential - don't fancy tenancy and maintenance issues later in life. Yet to decide what to do. Will keep reading SS.
Property.....The other portion of freed up cash will go towards property and cash - just not sure in what proportion. I like the idea of commercial (have enjoyed Dazz'z posts (disappointed to see him banned
), but not it's lack of liquidity. Residential - don't fancy tenancy and maintenance issues later in life. Yet to decide what to do. Will keep reading SS.
