index fund (passive management) growing dividends

[JEF32]

Hello everyone,
I am looking to invest in an index fund on "dividend aristocrats"
I saw the SPDR S&P Global Dividend Aristocrats UCITS ETF launched in 2013.
what do you think about it?
Is it smarter (taxation) than buying shares directly and receiving dividends?

Jeff

[Jerome]

Good morning
I don't think it's any more interesting from a tax point of view. On the other hand, it can be interesting if you don't have much cash at your disposal and want to buy a lot of aristocrats, without breaking the bank in transaction costs.

[JEF32]

Hello Jerome
Thank you for your reply.
1/ actually I don't know how this ETF works: do they pay dividends too or are they just trying to match the stock market price of a selection of aristocrat-type stocks? in which case we bet on the increase in value but not the payment of dividends, correct?

2/I have 10kE to invest and it is indeed a small capital (when I see that it takes around 80-100kE of shares to expect to receive 500e/month gross in dividends, it will be necessary to spread it out over time
I am wondering whether it is better not to invest in a parking space to rent, very accessible in capital or a Pinel apartment – an opinion?)

3/in fact, as we all agree that the market is going to crash soon, I wonder if it is a good strategy to wait for the crash and then buy this type of ETF or is it better to get into "aristocratic" stocks directly?
How did they behave during the last crashes? What discount can we expect?

4/also a stupid question: should we only buy 4* based on your tables or can we afford * or *?
in the event of a crash would a stock marked * remain* a priori?
Do you have a history of the changes in ratings on 3M, MCD, and Coca Cola for example?

THANKS!!!
Jeff

[Jerome]

Hi

1) dividends are distributed quarterly
2) dividends don't exclude real estate (or parking spaces)... personally, I do both, even if I'm only talking about dividends here. In the long term, dividend-paying stocks are more profitable than real estate.
3) by choosing stocks, you can select the best of the best, which is not the case with an ETF. Quality companies with growing dividends pay off well:
http://www.dividendes.ch/2012/08/les-atouts-des-payeurs-de-dividendes/
http://www.dividendes.ch/2012/06/presentation-aux-peers-a-lausanne-juin-2012/
4) 4* and 5* represent the best profitability/risk ratio. In the event of a crash, if fundamentals remain good, the stock maintains or increases its rating. But if fundamentals are poor, the rating will fall. In the stock details, you'll find the last rating before the change. But no history, sorry.

[Jeans]

Good morning,

Why do you say that the market is going to crash for sure in a short time? Similarly, seeing that you are approaching the real estate sector, do you have financial structures to pay less tax each year? (Ex: holding structure with mother-daughter regime….)

THANKS

[Jerome]

Good morning
for the market : http://www.dividendes.ch/evaluation-du-marche/
I don't know how long it will take, we need a trigger... but at the moment it's clear that it's not the right time to make massive purchases...
for the second question, it's not my specialty, so I'll eventually let others answer it.

[Jeans]

Thanks for your reply Jerome!

I'm not sure I understand why you have to evaluate the market before making any purchase and what the consequences are if you buy shares when the market is significantly overvalued. Could you clarify this for me?

THANKS

[Jerome]

It's important to take the market into account before buying an individual stock. The higher the market, the greater the risk. So, if this is the case, limit yourself to stocks that are less influenced by market movements (so-called low-beta stocks - food, consumer staples, cosmetics, cleaning products, tobacco, alcohol, real estate, etc.). You also need to buy less often and/or in smaller quantities, and above all focus on the best of the best, really choosing quality stocks that are still cheap.

[Jeans]

Before buying a security, you should systematically look at its PER, to know if the purchase price is overvalued or not, so is it really necessary to always calculate the TMC / NBI because this gives a more global vision of the market?

[Jerome]

Each stock is influenced to a greater or lesser extent by the market (which is reflected in its beta). A stock with a high beta, even one with a low P/E, can fall, just because its friends are falling too. Of course, if its fundamentals are good (which is not always the case with a low P/E), it will fall less than the market, and more importantly, it will rise faster.
The market view gives a global overview, while the PER or other valuation indicators give an individual view. The two views complement each other.

[JEF32]

Jérôme, I come back to your statement "In the long term, dividend-paying stocks are more profitable than real estate"
-What makes you say that?
-is this also valid for parking lots? do you invest directly by buying and then renting?

Jeff

[Jerome]

because rising dividends beat the equity market
http://www.dividendes.ch/2011/05/ces-dividendes-croissants-qui-battent-le-marche-13/
and that the equity market is outperforming the real estate market (historical average return of around 10% for equities, about half that for real estate).
I buy direct and I rent, but I also have real estate funds and REITs.

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