Dividend Yield Play

[ann]

Let's look at how WDC is travelling.....

[ann]

Let's look at MCW. This is a popular stock with the ladies....shopping centres....mmmm!

[ann]

...and then there is IPG. I think from memory they are TLS landlords......

How would you like to negotiate a new lease with Solly !!!

.....Hey ...don't worry about it!!!!....

[ann]

You know how mucha d'rent increase is gonna be dis time around?.......

[ann]

Sorry, don't know any dirt on SGP. Not saying there isn't any. I am just not privvy to it.

Fine.... I guess that just outs me from the inside group. That's OK 'cos I'm not !

[ann]

Rozella,

I was looking at yesterdays announcements and I see MRA posted their notice of distribution right on the dot of 6pm. I had a look to see when they went ex-distribution.....they didn't give a date. They just said the 31st would be the record date. That is a Saturday so does that mean they would have gone ex- dis today?

[ann]

They are paying $0.021516 per unit.... The units are $1.00 currently

[ann]

No MRA are probably going ex-dis on the 23rd, a couple of others had the same record day and they said the 23rd. Although, I wouldn't put it past Geoff to go ex- dis today just to stiff people. Oh Ann that was nasty !

[rozella]

VOF & CDF put through amended announcements today regarding incorrect record dates shown on Saturday 31st.

MRA have not as yet......a bit late if they do.

rozella

[ann]

Hi Rozella,

Just looking at the stocks we were talking about. Yep you could tell it was an ex day for them.

You're the man with the figures and facts.....were these drops in line with the Distribution payout and what you were expecting?

[ann]

...and then IPG...

[ann]

mmmmm.....shopping centres
....but are they as much fun as shopping on line?

[ann]

DUE closed at $2.49

....and as Rozella said in an earlier post....WDC rose to $17.92 but the Index still took a reasonable hit. It may jolt a few investors tomorrow?.......
Still there aren't many going ex tomorrow? I see the Streettracks 200 and 50 went ex today...is the Streettracks Property going off tomorrow?

[rozella]

For a very ordinary day, most LPT's fared ok.

My holdings are:
SGP div+fc = 22.41/share.....down 19.0
IPG div = 8.5/share...............down 7.0
MCW div = 7.6/share.............down 5.0
DUE div = 11.75/share...........down 10.0
TSO div = 8.5/share...............down 8.0
DRT div = 5.45/share..............down 5.0

SLF (S&P/ASX 200 listed property fund) has gone ex on 31st December for the last 3 years, probably 30th this year, no announcement yet. I don't worry about it....very little volume.

WDC is huge, approx market caps of the top 4 in the LPT sector are:
WDC 31.1 Billion
SGP 8.7 Billion
GPT 8.0 Billion
MGQ 6.8 Billion

see http://www.tradingroom.com.au/apps/m...t4040&next=all for others

rozella

[ann]

Hi Rozella,

Thanks for putting in that link...I love that site it is a wealth of information.....has a good history of past divie payments of the companies as well.

I think the Streettracks Property 200 SLF is mostly used by institutions. It saves them from mucking around re-weighting their holdings. It is lucky it is not part of the property index as its market capitalisation is $91,950,018.....

What am I saying?.....that's not much at all...!! Oh dear I worry myself sometimes!

Ann

[rozella]

SLF reported tonight around 7:30pm exdist 30th

rozella

[ann]

Thanks for that Rozella,

I wonder if you could explain a bit about the 45 day holding rule for taxation purposes.

Is it if you get over $5000 in dividends you have to hold for 45 days to get the franking credits?

[rozella]

G'day ann,

This is the ATO link
http://ato.gov.au/individuals/conten...07.htm&page=10

Each individual tax entity, has a threshhold of $5000 in franking credits, to be able to trade under 45 days + buy & sell days.
i.e if you go over this total franking amount of $5000 for all your dividend stocks throughout the year, you will lose any franking credit exdemption for those stocks traded under the 45+ days

Companies don't have this $5000 exemption, so all stocks must be held 45 days + to be entitled to franking credits.

Joint shareholders have $5000 exemption each.

It would depend on the amount of dividends & trading capital you have, as to whether you would be concerned about the exemption or not as it can be restrictive.....it is just mathematical.

This is not advice as I am not a financial advisor, so the facts should be talked over with a licenced expert to suit individual circumstances.

rozella

[ann]

Thanks for that Rozella,

A very interesting link. I was always under the misapprehension that one could only receive $5000 in dividends but I see reading the link you included that it is around $11.666.

This is roughly equivalent to receiving a fully franked dividend of $11,666, based on the current tax rate of 30% for companies.

[rozella]

Yes, thats right. By mixing in various zero franked stocks, such as LPT's, it is not that difficult to achieve $18000 in dividends per tax entity, up from the $11666, & still stay under $5000 franking credits. So this way with joint shareholders, you can acheive 2 x $18000 in dividends + 2 x $5000 exemption, trading under 45 days. Its a start before any trading profits.

As I mentioned previously, it depends on your level of trading whether it is worth holding out for, as it may restrict your trading profits.

rozella

[rozella]

A good proportion of my stocks bought in December for the dividends are almost back to their buy prices.

Sold TCL today @ 680.0
Bought 8th December @ 680.0 with a margin of 70%
Investment 204.0/share
Exdistribution 23rd December, distribution 24.5/unit, zero franked.
Gross profit 24.5/unit = 12.01% return on investment. 27 days

rozella

[rozella]

Sold 1 parcel of WDC today @ 1824.0
Bought 8th August @ 1790.0 with a margin of 75%
Investment 447.5/share
Exdist 9th August, distribution 51.07/share, franking 12.57% 2.75/share
Gross profit 87.82/share = 19.62% return on investment. 149 days

WDC is due to report approx 3rd February for another exdist approx 8th February.
I will try for a re-entry on a low day. Also I still have another parcel.

rozella

[rozella]

Sold my last parcel of WDC today on the open @ 1826.0
Bought 4th August @ 1795.0 with a margin of 75%. Investment 448.75/.share.
Exdist 9th August, distribution 51.07/share, franking 12.57% 2.75/share
Gross profit 84.82/share = 18.90% return on investment. 154 days

rozella

[rozella]

Sold my last parcel of SGB today @ 2977.8 in bits & pieces
Bought 18th November @ 2922.0 with a margin of 75%
Investment 730.50/share
Exdiv 28th November, dividend 70.0/share fully franked 30.0/share
Gross profit 155.8/share = 21.33% return on investment. 48 days.

rozella

[rozella]

Sold MCW today @ 202.0 in bits & pieces
Bought 20th December @ 202.0 with a margin of 65%
Investment 70.7/share
Exdist 22nd December, distribution 7.6/unit zero franked
Gross profit 7.6/unit = 10.75% return on investment. 16 days

rozella