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Colin Reed

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  • ICBC: 'China Inc.' With A 5% Yield [View article]
    Thanks. ICBC is the world's biggest bank, but is largely unknown to US investors. I managed to buy it at 5.01 HKD since writing the article, so I am sitting on an 8% gain based Friday's close.
    Jan 20 01:47 PM | Likes Like |Link to Comment
  • Dividend Growth Is Not As Important As You Think - Here's Why [View article]
    Thanks for your comments Robert. My reference to 'conventional wisdom' was not to SA. Wisdom on SA is anything but conventional. It refers more to the articles that I see in the mainstream financial press.
    The purpose was not to debase the value of growth. If your income is not going to grow via an increasing dividend, your income might as well be uhmmm..Fixed. The article was trying to say start right and you have a better chance of ending right. Start low and you spend a lot of time catching up. This of course is not an argument for picking outliers where the market is pricing in a dividend cut either. I was trying to point out that by giving in to a home bias US, investors are giving themselves an unnecessary handicap. The S&P 500 has a p/o ratio of 28%. Australia has a p/o ratio of 65%. Without assuming a lot of risk I can increase my yield substantially - just by shopping for it elsewhere. Of course price points, p/e,growth etc matter the same regardless.
    Dec 5 04:03 PM | 1 Like Like |Link to Comment
  • Dividend Growth Is Not As Important As You Think - Here's Why [View article]
    That structured, disciplined approach will serve you well . If it is applied consistently. I also own COP (bought around the 2008/2009 lows) yoc is decent - currently 5.23% CAGR is also decent, so I have kept it. It is the only US stock I own. Am finding div growth + higher current yields elsewhere.
    Dec 5 12:10 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Is Not As Important As You Think - Here's Why [View article]
    Point well made Dave. Ideally you want you start point > 5 % For me the Div Arist def for inclusion is both rigid and misleading. I don't need increases every year, but 5-10 year periods I need to see the p/o increasing by a substantial margin over the inflation rate. I find many UK/Australian stocks manage to deliver just that.
    Dec 5 12:03 PM | 1 Like Like |Link to Comment
  • Dividend Growth Is Not As Important As You Think - Here's Why [View article]
    Thanks for your kind words SDS. I don't have any problem with companies managing their div policy. Every company does does and should. It is how it is done. Increasing the p/o while eps is stagnant is managing, but really is mismanagement. Paying out < 15% of earnings and increasing the div by the inflation rate each year so as to remain in the div aristocrats is also managing. I would call it manipulation.
    Dec 5 11:43 AM | 1 Like Like |Link to Comment
  • Dividend Growth Is Not As Important As You Think - Here's Why [View article]
    Interesting comment Charles. I am not sure I fully understand. Could you enlarge?
    Dec 5 11:36 AM | Likes Like |Link to Comment
  • Dividend Growth Is Not As Important As You Think - Here's Why [View article]
    Appreciate all your comments. I am in Europe atm, where it is late writing this. Will respond tomorrow....
    Dec 4 05:33 PM | Likes Like |Link to Comment
  • Reclaim Dividend Withholding Tax To Maximise Returns [View instapost]
    Very useful article Steven. Not sure the 30% number is correct for US.
    Have never seen anything higher than 15%
    Nov 17 04:11 AM | Likes Like |Link to Comment
  • This Nation Has The Highest Individual Net Worth And Its Stock Market Offers 5.2% Current Yield [View article]
    Thanks Patrick. I agree. The comments always inform more about the subject than the article alone.
    Oct 26 05:29 PM | 1 Like Like |Link to Comment
  • 2 Utilities To Beat 15 Dividend Champions [View article]
    There is 0% tax withholding on dividends paid out by UK companies to US investors.
    Your UK shares are likely to be held within CREST, the Central Securities Depository for the U.K, (equivalent of the
    DTC in the US). The only revenue they would collect/withhold for the UK tax authorities is stamp duty, which is 0.5% of the value of any share buy order.
    Oct 25 02:41 PM | 1 Like Like |Link to Comment
  • This Nation Has The Highest Individual Net Worth And Its Stock Market Offers 5.2% Current Yield [View article]
    There is always exchange rate risk. It also hits multinationals who report in USD. I would argue that their currency reflects more the strength in the Australian economy, with interest rates being more of a blunt tool for central banks to ease/constrict the money supply.
    Australia's geographic location is a secondary factor in the demand equation, otherwise China's location would also be a restrictive factor for their export economy. But you're right there is real downside risk from here with AUD. I tend to spread my income flows across UK, EUR, CAD, HK, BRA. I would gladly invest more at home, but US payout ratios/yields are so lousy, I hold little US paper, apart from what I picked up during the 2008/09, where yoc is now > 5.0%
    Oct 25 02:19 PM | 2 Likes Like |Link to Comment
  • This Nation Has The Highest Individual Net Worth And Its Stock Market Offers 5.2% Current Yield [View article]
    Depending on your broker, you should be able to get it through them. If they are big like JPM or BAC, they will also have a custodian dept and your brokerage should be able to source it internally from them. The net has bits and pieces, but it is often unreliable or out of date.
    Oct 24 11:46 AM | Likes Like |Link to Comment
  • This Nation Has The Highest Individual Net Worth And Its Stock Market Offers 5.2% Current Yield [View article]
    Thanks for your comments Eric. No doubt Oz has got bubble trouble with real estate, particularly in the larger cities like Sydney. But so does Canada in Toronto and Vancouver. The similarities between the two economies are many, but Australia is less dependent on China than most people think. < 25% of their total exports go to China. Canada exports > 80% of their output to the US. Both countries are characterized by a highly regulated bank sector with conservative lending practices. Even if the housing market comes off, their financial structure will not implode. You're right though they're the top of the league right now because of housing. But the long term performance of their equity market is not a fad - that was the main thrust of the article.
    Oct 24 11:41 AM | 1 Like Like |Link to Comment
  • This Nation Has The Highest Individual Net Worth And Its Stock Market Offers 5.2% Current Yield [View article]
    Thanks surgeezer. Look forward to checking the holdings of CEF.
    Oct 24 11:32 AM | Likes Like |Link to Comment
  • This Nation Has The Highest Individual Net Worth And Its Stock Market Offers 5.2% Current Yield [View article]
    I sit with Corporate Actions (CA) at a large Financial institution. With optional CA's (like rights issues), it is usually restrictions from regulatory bodies in the shareholders domicile that prevents the custodian bank from offering the option. The US (SEC) is extremely restrictive in this regard.


    Japan, Canada are quite strict, but the US is extreme.
    Oct 24 11:31 AM | Likes Like |Link to Comment
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87 Comments
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