Showing posts with label dividends. Show all posts
Showing posts with label dividends. Show all posts

Saturday, April 13, 2019

Right Now Its all about the Dividend

Image result for Right Now Its all about the Dividend

Well I am a simple guy.

Simple things follow me around.

A like simple cars, simple food, a simple place to lay my head, a simple woman (mmwwhh) and a simple place to park my money.

With the money thing in mind let me tell you it has been quite easy to do - I have gotten where i want to go and am living comfortably off on my dividends.

I have gotten to this point by working hard and buying stocks at the right prices at the right time and by keeping them forever.

You must never touch the source of the dividends. Never.

I had a life changing incident that happened over 7 years ago and this kind of coincided with the beginnings of bull runs - that still haven't ended - all around the planet and luckily matched my criteria for buying shares and I bought a lot.  

How did a bloke who has enjoyed a lot of his life, got divorced, got lawyers involved in his private life managed to be in the envious position of not having to work if he doesn't want to - I don't see that happening really - and is about to make a leap into the "unknown"? Well it was kind of "planned" that way.

Like most human beings I think i'm basically a lazy person. So everything from the age of 30 right up until I was a father in my 40's was working.

Really stepping into my investing life once again everything has been engineered or "planned" in that way. I always looked for good dividend paying stocks - after making a few pratfalls along the way - and over the years those have paid off big time. 

There has been much writing done throughout this blog about my style of investing but its basically buy a great company at the right price and keep your eyes on it.

I only own 8 companies on the NZX.

That sort of brings me back to right now.

You have to maintain that discipline, especially when you are paying a higher price -remember your money isn't going to get a better return than the stock market.

Right now, I don't see any other sort of investment that is going to return more money to you now than a great company on the NZX - and you can include other borses as well. There are still 1 or 2 companies around now that are paying good divs or will be in a good position to pay far higher divs in the future and I have some now!!

And until something goes uncontrollably wrong - like interest rates creep up. Little is going to happen. I say little because you can never be to sure whats around the corner.

AND of course 5 years down the track you will be saying what did that bloke say again?

Invest/trade wisely.




c Share Investor 2019











Tuesday, August 29, 2017

Auckland Airport: Look Before You Leap

AIA 30 day price history


Auckland International Airport Ltd [AIA.NZX] has a dividend coming of 10.5c fully imputed at the company tax rate of 28% and due to those on the register at close of biz on the 6th October 2017.

Can you get this dividend and protect your capital base at the same time.

No, is the answer but you stand an almost unique chance of getting the Div plus capital gains anyway.

That has been my experience over the years of trading this baby in and out of lulls, bulls, bears any any other term you care to mention.

I currently own 2000 shares based on just this and have done for 3 reporting periods.

So if your game and really want to have a go get in now. At sub 7 bucks this one has 7 plus bucks written all over it before the Oct 6 cut off.

Weather you sell into the share price increase or stay around and collect the Div you cant lose either way.

I, if I had money, I would buy today.



AIA @ Share Investor


Auckland Airport: Its a Buy
AIA: To Buy Now Or Not To ?
Share Investor Q & A: Auckland Airport's Simon Moutter
Auckland Council look set for a Auckland Airport Takeover
Auckland City Council new AIA Policy Doc
Make me an offer I cant refuse: Auckland International Airport Ltd
Long Term View: Auckland International Airport
VIDEO - Simon Moutter on Australian Airport Purchase
Auckland Airport Capital Raising a fair call
Auckland International Airport lands Australian Ports
What Infratil sale of Auckland Airport stake means
Is another Auckland Airport bid likely under a business friendly Government?
Latest Airport coverage
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?


Queenstown Airport Buyout @ Share Investor

Queenstown Airport: Queenstown Airport Update
Auckland Airport CEO on Queenstown Airport Fracas
Queenstown Airport: Court Case looks set to Drag
Queenstown Airport: Loud Voices & Loyalty
Queenstown Airport: Air New Zealand's Crocodile Tears
Queenstown Airport: AIA purchase good Long-Term but will cost shareholders Short-Term

Discuss this Stock @ Share Investor Forum - Register free 
Download AIA Company Reports





Share Investor 2017


Tuesday, August 30, 2011

Sky Network Television Ltd: Time for some Stripping!

After the latest Sky Network Television Ltd [SKT.NZX] profit result current shareholders are in for an early Christmas present in the form of a hefty and very attractive (like the completely in context photo to your left)dividend.

SKT have had a very good 12 months to June 30 2011 and on top of their 10.5c regular dividend they are paying a special dividend of 25c as a bonus. If you are eligible for the tax credits this is just under 50c per share or an approx 8% return on the current share price of $5.80.

What I am surprised about is that the share price has been stagnant since the announcement last Friday given the hefty return this would give the average investor and the fact that one would be stretching to get a third of this return if they left their green stuff in the bank.

The company is likely to have a another good year for full year 2012 with revenue gleaned from increased Rugby World Cup subscriptions so either I am missing something or potential investors are asleep at their computers.

If you look at the SKT share price (see 1 year chart below) it has been trading around its current level since May and is up about 15% since January so the stock price has mirrored an overall increase in stock prices for that period so you couldn't really say its share price has left the realities of its fiscal performance for the previous 12 months.

Investors have until 7 September to qualify for the payout and will get the green stuff in their banks just a week latter.

I good move for you dividend strippers out there.


Sky Network Television @ Share Investor

Share Price Alert: Sky Network Television Ltd
Long Term View: Sky Network Television Ltd
Watching Sky Television
Market Quickie: Sky TV Worth Watching

Discuss SKT @ Share Investor Forum
Download SKT Company Reports




c Share Investor 2011







Thursday, June 10, 2010

NZX's Top 10 Dividend Returns

It is hard to get good returns from term investments and the property market at the moment with around a 3.5% real return from the former and similarly low results from investment properties, if you bought a house over the last 10 years.

The New Zealand Stockmarket has some good returns on selected stocks many are getting close to a 10% gross return. With this in mind lets take a look at the 10 best dividend players listed on the NZX.

Figures are gleaned from the NZX website and are based on figures calculated from market prices as of close of market on 9 June 2010. The gross returns are based on past profit performance.


The Top Ten

Telecom NZ Ltd [TEL.NZ] - 13.26%

Steel & Tube Holdings [STU.NZ] - 11.92%

Kiwi Income Property Ltd [KIP.NZ] - 9.92%

Vector Ltd [VCT.NZ] - 9.35%

Hallenstein Glasson Holdings [HLG.NZ] - 9.22%

Telstra Corp [TLS.NZ] - 9.08%

Freightways Ltd [FRE.NZ] - 8.41%

Air New Zealand [AIR.NZ] - 8.28%

Goodman Fielder Ltd [GFF.NZ] - 7.82%

Restaurant Brands Ltd [RBD.NZ] - 7.76%


While not guaranteed returns - the likes of TEL, TLS, KIP & AIR dividends will be under future pressure - even the minimum return from RBDs 7.76% is nearly twice the return of term investments and investment property.

Good to see I own 5 out of the top 10.

Disclosure I own FRE, GFF, HLG, KIP, STU in the Share Investor Portfolio


Recent Share Investor Reading

Discuss this topic @ Share Investor Forum




Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions)Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) by Benjamin Graham
Buy new: $41.77 / Used from: $33.50
Usually ships in 24 hours






c Share Investor 2010




Monday, March 15, 2010

Share Investor Short: Warehouse Group yield worth a look - A second look

Chart forWarehouse Group Ltd (The) (WHS.NZ)

I wrote about this back in September 2009 just after the 2009 full year profit was announced and a 15.5c dividend was declared. The share price was NZ $4.25 at the time.

The WHS 2010 half year profit was released last Friday and a 17c dividend was declared. The current trading price of WHS shares is $3.90 so clearly the opportunity this time is even better than last year.

It is called dividend stripping.

Dividend stripping* is something worth doing. That is, getting in early when a good dividend is announced and riding the share price upwards before the dividend is paid or holding on to collect the dividend then ditching the stock, depending on how you think the market will treat the company post dividend.

I may or may not have done this over the years and if I did it certainly wasn't my intention to do so, yeah OK.

The Warehouse have been increasing dividends of late because of unused tax credits held by them and a better looking cash flow situation.

With cash flows up considerably this year the dividends are now rolling in again.

If you add the 30% imputation credits and are able to use them to offset taxes then you are in for a payout of :

17 c dividends + 5.11c tax credits = 22.1c , which equates to around a 5.5% gross return at the market share price on Monday 15 March of NZ$3.90 - the net return is obviously higher if you are able to fully use the tax credits.

An excellent short term payout for doing next to nothing and it is better than a term deposit because it does not take a full year to payback.

There is also the probability that those after the dividend will push up the stock price to enable you to get out with a good capital gain before the dividend is paid, if you wish to do so.

Of course, and I have to get this in before I wrap it up. If you are a long-term shareholder in the company your return for the year would have been a 32.5c per share net dividend and the possibility of more than 10c in tax credits - a plus 10% net return for the year based on my share purchase price.

Long term wins again but who says you cant have the best of both worlds!



* Of course as one reader pointed out in September 2009, the process of dividend stripping, if the intention is to do that, the capital gain that you make is taxable.


The Warehouse Group @ Share Investor

The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Share Investor Forum
- Discuss this Stock

Related Amazon Reading

Dividend Capture
Dividend Capture by Barbara, L Minton
Buy new: $12.69 / Used from: $6.00
Usually ships in 24 hours

c Share Investor 2010

Friday, September 18, 2009

The Power of Dividends

Just like interest, dividends are a powerful addition to ones investing hand.

When re-invested in good companies they can make an average return a spectacular one over the long-term.

In the Share Investor Portfolio, which has been in action in one form or another for the last 7 years I have received just over NZ$113,000 in dividends and tax credits, not bad for a portfolio that is worth only around $320,000 on today's valuation and one that has been considerably smaller in its early days.

All of the cash has been reinvested back into the portfolio, as have the tax credits which I am able to use fully.

The bulk of the dividends come from just one stock, Sky City Entertainment Group [SKC.NZ] making up over half the booty, then much smaller amounts from The Warehouse Group [WHS.NZ] Freightways Ltd [FRE.NZ] and Mainfreight [MFT.NZ] until they taper off to just a couple of thousand for the smaller stock holdings.

While dividends are not always a sign a company is doing well, often a higher dividend payout reflects that a company's cash turnover is a good one and then they are able to pass that turnover onto the shareholder.

A high dividend though should never be the only criteria for buying a stock.

I expect the dividend contribution to the Share Investor Portfolio to at least pay enough as to provide enough income over the next ten years to double the value of my investment, regardless of any capital value fluctuations from week to week and year to year.

Just what a good business should do.

Recent Share Investor Reading

Discuss this topic @ Share Investor Forum

Related Amazon Reading

All About Dividend Investing: The Easy Way to Get Started (All About Series)
All About Dividend Investing: The Easy Way to Get Started (All About Series) by Don Schreiber
Buy new: $14.21 / Used from: $5.85
Usually ships in 24 hours


c Share Investor 2009

Monday, September 14, 2009

Share Investor Short: Warehouse Group yield worth a look

I don't usually do this here but I want to take a look at a good short term play.

Yeah OK, my attention span is a little limited lately due to the arrival of the stork.

Dividend stripping * is something worth doing though. That is, getting in early when a good dividend is announced and riding the share price upwards before the dividend is paid or holding on to collect the dividend then ditching the stock, depending on how you think the market will treat the company post dividend.

I may or may not have done this over the years and if I did it certainly wasn't my intention to do so, yeah OK.

The Warehouse Group [WHS.NZ] just announced their 2009 Full Year profit last Friday and along with it came a surprise to the market, a special dividend of 10c per share. This comes on top of the usual 5.5c a share paid.

The Warehouse have had a history of special dividends over the years but haven't been able to pay one for many years because of cash flow problems due to their ill-fated expansion in Australia.

With cash flows up considerably this year the dividends are now rolling in again.

If you add the 33% imputation credits and are able to use them to offset taxes then you are in for a payout of :

15.5c dividends + 5.11c tax credits = 20.61c , which equates to around a 4.85% gross return at a closing share price on Friday 11 Sept of NZ$4.25 - the net return is obviously higher if you are able to fully use the tax credits.

An excellent short term payout for doing next to nothing and it is better than a term deposit because it does not take a full year to payback.

There is also the probability that those after the dividend will push up the stock price to enable you to get out with a good capital gain before the dividend is paid, if you wish to do so.

Of course, and I have to get this in before I wrap it up. If you are a long-term shareholder in the company your return for the year would have been a 31c per share net dividend and the possibility of more than 10c in tax credits - a plus 10% net return for the year based on my share purchase price.

Long term wins again but who says you cant have the best of both worlds!

* Of course as one reader pointed out below, the process of dividend stripping, if the intention is to do that, the capital gain that you make is taxable.


The Warehouse Group @ Share Investor

Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Share Investor Forum
- Discuss this Stock

Related Amazon Reading

Dividend Capture
Dividend Capture by Barbara, L Minton
Buy new: $12.69 / Used from: $6.00
Usually ships in 24 hours

c Share Investor 2009

Friday, February 20, 2009

Time to ditch the dividends

I wrote a couple of days ago about Goodman Fielder Ltd [GFF.NZ] using a dividend re-investment plan to help with company cash-flow in these hard times.


Let me add another string to that cashflow bow.

Shareholders in NZX listed companies should expect dividends to be cut even if profits are not correspondingly lower.

Far be it from me to suggest this because many of the companies in the Share Investor Portfolio have good dividend returns but I think it would be a prudent move for companies to lower or cancel dividend payouts until this recession comes to an end.

New Zealand companies pay handsome dividends at the best of times but as we know this aint the best of times.

The scary thought is that some companies even use borrowed money to pay dividends and that isn't wise even when the economy is ticking along nicely and will certainly be more difficult to do during this credit drought.

Unfortunately Kiwis live in some sort of dividend fools paradise where investors often gauge the investing potential of the company by that criteria alone. Company hierarchy don't often help that scenario either by pandering to that market expectation of more company moola for stockholders = a good company.

I have been guilty of this peculiar investor trait! but have learned to relax when a dividend cut is used for a more business efficient purpose-like investing moola back into the company.

Cash-flow is all important for businesses at the moment and it is normally used to pay all sorts of short term liabilities, so clearly having a bigger free cashflow will help a business function better on a day to day basis.

Just remind yourself a dividend cut will not be forever and ultimately it will be good for your investment in the long run-Warren Buffett's Berkshire Hathaway has never paid a dividend and its shares are currently traded at around US$84,000.00 each. (Its high was near double that!)

You might even like to to give your CFO a friendly phone call and gently suggest he take my advice.

Recent Share Investor Reading

Recommended Amazon Reading

Dividend Policy: Its Impact on Firm Value

Dividend Policy: Its Impact on Firm Value by Ronald C. Lease
Buy new: $36.00 / Used from: $6.19
Usually ships in 24 hours

The Standard & Poor's Guide to Building Wealth with Dividend Stocks

The Standard & Poor's Guide to Building Wealth with Dividend Stocks by Joseph Tigue
Buy new: $18.21 / Used from: $1.60
Usually ships in 24 hours


c Share Investor 2009