This is being quite irresponsible given the original posters need for this money...however for the sake of discussion as to how to get a grossed up dividend yield of over 12.5% p.a. read on.
I'd buy Telstra shares. TLS closed today at $3.18.
At AGM yesterday director stated intention to pay 28c/p.a. fully franked dividend (that's 40c/share with franking credits) for 2011/2012 and 2012/2013. That's a grossed up yield of over 12.5% p.a. for next 2 years.
Also talk at AGM of a possible share buyback to be announced early next year. Analysts are suggesting TLS will buy back up to 4% of its own stock. Buybacks are usually good for a company's shareprice.
If I was really brave I'd do it on margin loan through Macquarie at 90% lvr... and gear the return/risk up by a factor of 10. You only live once. Note this may not be good for the father's blood pressure.
I'd buy Telstra shares. TLS closed today at $3.18.
At AGM yesterday director stated intention to pay 28c/p.a. fully franked dividend (that's 40c/share with franking credits) for 2011/2012 and 2012/2013. That's a grossed up yield of over 12.5% p.a. for next 2 years.
Also talk at AGM of a possible share buyback to be announced early next year. Analysts are suggesting TLS will buy back up to 4% of its own stock. Buybacks are usually good for a company's shareprice.
If I was really brave I'd do it on margin loan through Macquarie at 90% lvr... and gear the return/risk up by a factor of 10. You only live once. Note this may not be good for the father's blood pressure.
Last edited: