My Dividend Growth Portfolio Strategy [View article]
lnzkeeper, sorry for the belated response. I must have missed this comment earlier. I used to hold Worley Parsons. I like the business alot. I have a preference for ASX:MND (Mondalpheous) which I currently hold because the dividend is slightly higher and growth looks a little stronger to me. The mining services companies have been doing very well these last few years, and with prices stabilizing for most of the commodities, I continue to believe returns will be good for these companies over the next few years. Both continue to win new business.
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Thanks for the feedback tmoney. You have plenty of time to see some great growth in your dividend income and you total net worth! I wish I had the foresight to start dividend investing at your age!.
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Fair point Misho. If you have tax distortions that treat capital gains more favorably and penalize dividends on a relative basis, I can see why you'd have a preference for the lower yield, higher growth plays.
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Well said Pendragon! Very high yielders with the chance of a dividend cut don't sit well in a young investors portfolio either. Its the sweet spot of moderate enough to be impactful, but not so high that the yield isn't sustainable and is at risk of a cut.
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Thanks for the comment Goings. You really see the power of reinvestment as a contributor to returns over a long period of time. However in my view, you can't really drive significant reinvestment with a very small yield. Hence getting moderate to high yielders to power your dividend machine in the initial stages is well worth it. Plus higher yielders tend not to be so volatile as I tried to point out, and don't allow Mr Market to scare away investors as easily.
My Dividend Growth Portfolio Strategy [View article]
fschew, yes in fact Australians have access to superannuation funds. They can set up their own self managed superannuation fund which works in a similar way to tax sheltered accounts.
My Dividend Growth Portfolio Strategy [View article]
Thanks for the comment BloggingBanks.
I have held the aussie banks for quite some time. I personally wouldn't buy them now as I believe they are expensive, but they have been paying out good dividends for quite some time. I also like the fact that they have significant interest in the wealth management sector, which should propel their earnings over time. There are concerns about their exposure to an overvalued property market, but Australian loans are generally full recourse, bad debts are still fairly low, and short of a complete economic collapse, I don't see the banks being impacted, or their dividends being put at risk
My Dividend Growth Portfolio Strategy [View article]
Billinsd, See my earlier response above. Franked dividends (which have a tax credit representing Australian tax paid by corporations carry no witholding to my understanding. Most of the Australian dividends are ultimately carried through as qualified dividends (ie paid by corporations subject to US tax treaty) and taxed as such if in a taxable account I believe.
My Dividend Growth Portfolio Strategy [View article]
Thanks Robert/Chowder,
I'd certainly like to make new additions to the portfolio more tax efficient than they currently are now. I think a Roth IRA merits further investigation for at least some portion of the portfolio.
My Dividend Growth Portfolio Strategy [View article]
Thanks for the comment manfredthree. Much to like about CSX in my view. Railroad assets are wide moat businesses that are difficult to replicate without significant investment.
My Dividend Growth Portfolio Strategy [View article]
Thanks User. I started investing in my early 20's, probably 23 or so. After some trial and error, I latched onto dividend growth investing in my mid 20's, I would guess around 26, so have been using the basis of a dividend growth strategy for the last 10 years.
My Dividend Growth Portfolio Strategy [View article]
Thanks Horowitz, the tax consequences are a little bit complicated by the franking treatment of dividends that Australia has on its shares (which have a tax credit attached), so in this case, these dividends are exempt from any witholding tax. Most of my positions carry franked dividends, reducing any witholding.
My Dividend Growth Portfolio Strategy [View article]
Thanks sshah. Dividend reinvestment via DRIP is a nice way to accelerate your portfolio in the early years, even when you only have modest amounts to invest. Having a diversified income source beyond your main income can provide great flexibility in my view
My Dividend Growth Portfolio Strategy [View article]
Thanks for the comment fschew.
While a Roth IRA isn't available for my Australian equity holdings, I will look at that as an option for my new US positions. Tax leakage is a major problem in the portfolio currently. Most of my positions still meet the test for qualified dividends, somewhat minimizing the problem, but minimizing tax outgoings for new positions is something I am keen to do.
My Dividend Growth Portfolio Strategy [View article]
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
Dividend Growth Strategies For Younger Investors - Part 2 [View article]
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
I have held the aussie banks for quite some time. I personally wouldn't buy them now as I believe they are expensive, but they have been paying out good dividends for quite some time. I also like the fact that they have significant interest in the wealth management sector, which should propel their earnings over time. There are concerns about their exposure to an overvalued property market, but Australian loans are generally full recourse, bad debts are still fairly low, and short of a complete economic collapse, I don't see the banks being impacted, or their dividends being put at risk
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
I'd certainly like to make new additions to the portfolio more tax efficient than they currently are now. I think a Roth IRA merits further investigation for at least some portion of the portfolio.
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
My Dividend Growth Portfolio Strategy [View article]
While a Roth IRA isn't available for my Australian equity holdings, I will look at that as an option for my new US positions. Tax leakage is a major problem in the portfolio currently. Most of my positions still meet the test for qualified dividends, somewhat minimizing the problem, but minimizing tax outgoings for new positions is something I am keen to do.