Lopazz's Wallet

[Jerome]

Hello Guy and welcome

 

I don't have any info on Swiss Re. Does Birdie know more about this???

[birdienumnum]

Good morning,

 

I confirm. The SREN share will pay CHF 7.50 in tax-free dividends this year by drawing on its reserves.

Other companies, such as Zurich Insurance, are doing the same this year. However, reserves are running out.

and it is not said that Swiss law will not change. Some right-thinking leftists see this as a tax injustice.

[guy71]

Good evening,

 

Thank you both very much for responding to my message.

 

The dividend payment is particularly interesting this year for SREN shares.

[copycat10]

Indeed 7.50 CHF back to school on 17.04 Really a good deal, but I doubt that this will be the case again in a year.

For the 35% of Swiss withholding taxes, I find it interesting to be able to recover this from the tax office. That always means less to pay out later.

[Jerome]

that's exactly it... when I see my final tax statement and my dividends have already contributed to part of the bill I can't help but smile 😎

[kienast]

Good morning,

I am following your portfolio closely. I have a small question that may seem silly. When you say that you carry out foreign exchange transactions before investing in the US market, can you explain how this works?

 

Is it Binck who will do the exchange? 

 

THANKS

K

[Lopazz]

kienast said
Good morning,

I am following your portfolio closely. I have a small question that may seem silly. When you say that you carry out foreign exchange transactions before investing in the US market, can you explain how this works?

 

Is it Binck who will do the exchange? 

 

THANKS

K

Hello and thank you for your interest,

 

Indeed, I negotiated with Binck to have a USD compartment within my securities account, in order to have control over my exchange rate (I can exchange whenever I want and keep cash in USD without buying shares), and this also allows me to avoid paying the exchange commission on the dividend received in USD or the proceeds from the sale of USD shares that I wish to reinvest.

[kienast]

THANKS

Can you give me the procedure to follow please, I am also at Binck and would like to do the same thing,

 

thanks again

[Lopazz]

My portfolio update as of August 20, 2013

Initial amount: EUR 370,000 including remaining cash to be invested EUR 34,649

Yield on cost (excluding cash): 4.4 %

Gross annual return: 14,666 EUR

PORTFOLIO VALUATION AS OF 08/20/2013

Code:

~Discretionary consumption (7.4%):

150 McDonald's Corp (USD)______________________3.0%

110 BIC Company SA______________________________2.8%

175 Lowe's Cos Inc (USD)________________________1.6%

~Basic consumption (39.8%):

1200 Coca-Cola Co/The (USD)__________________________9.9%

300 Clorox Co/The (USD)________________________5.3%

200 Casino Guichard Perrachon SA_______________4,3%

235 Procter & Gamble Co/The (USD)______________4.0%

310 Colgate-Palmolive Co (USD)_________________3.9%

200 Philip Morris International Inc (USD)______3.6%

209 Danone SA__________________________________3.5%

350 Unilever PLC (GBP)_________________________3.0%

96 Wal-Mart Stores Inc (USD)__________________1.5%

105 Hormel Foods Corp (USD)____________________0.9%

~Energy (12.7%):

830 Total SA___________________________________9.7%

120 Ruby SCA__________________________________1.6%

1000 BP PLC (GBP)________________________________1.4%

~Financial services (9.5%):

100 CIC_________________________________________3.3%

150 Bank of Nova Scotia (CAD)_________________1.8%

250 SCOR SE____________________________________1.7%

300 AXA SA_____________________________________1.5%

1300 Natixis____________________________________1.2%

~Health (7.8%):

213 Johnson & Johnson (USD)____________________4.1%

250 GlaxoSmithKline PLC (GBP)__________________1.4%

60 Sanofi__________________________________1.3%

64 AbbVie Inc (USD)___________________________0.6%

64 Abbott Laboratories (USD)__________________0.5%

~Industry (3.0%):

156 Vinci SA___________________________________1.8%

160 Soc Mar Tunnel Prado Car___________________1.3%

~Basic materials (3.2%):

110 Air Liquide SA_____________________________3.2%

~Information Technology (1.5%):

100 Neopost SA_________________________________1.5%

~Telecommunication services (2.9%):

280 Belgacom SA________________________________1.5%

220 Eutelsat Communications SA_________________1.4%

~Community services:

n / A

~Real Estate (6.8%):

400 Realty Income Corp (USD)___________________3.3%

280 Corrections Corp of America (USD)__________2.0%

1500 Link REIT/The (HKD)________________________1.5%

~Funds/Trackers (5.3%):

500 SPDR Barclays Short Term High Yield Bond___3.2%

250 SPDR Barclays High Yield Bond ETF (USD)____2.1%

~Liquidity:

__________________________________________________9,0%

Made with XlsPortfolio

PORTFOLIO VALUATION AS OF 08/20/2013 (real estate only)

Code:

~Retail REIT (70.9%):

400 Realty Income Corp (USD)__________________49.1%

1500 Link REIT/The (HKD)________________________21.8%

~Specialty & Other REIT (29.1%):

280 Corrections Corp of America (USD)_________29.1%

Made with XlsPortfolio

[Jerome]

Glad to read you again Lopazz

Your wallet has evolved nicely. It's a nice big cash generating machine. 4.4% of YOC is solid.

Could you comment on your decision to keep Abbott and AbbVie? 

Are you confident in the long term in stocks like Realty Income? I am always reluctant to invest in this type of instrument.

[Lopazz]

Jerome said
Glad to read you again Lopazz

Your wallet has evolved nicely. It's a nice big cash generating machine. 4.4% of YOC is solid.

Could you comment on your decision to keep Abbott and AbbVie? 

Are you confident in the long term in stocks like Realty Income? I am always reluctant to invest in this type of instrument.

Hi Jerome,

 

Regarding Abbott and AbbVie: in doubt, and given the little importance of these lines in my portfolio (the two represent 1.1%), I preferred to do nothing. If I had to make a decision, I think that like you, I would have sold AbbVie to keep Abbott. The market would have ultimately proven me wrong. In the meantime, I am holding these stocks as if there had been no spin-off, and I am watching the dividend fall... If I had to reinvest, I would invest 50/50 on both stocks. A bit like the KRFT and MDLZ spin-off in which I plan to take a stake, also 50/50.

 

About Realty Income, I think it is a high-quality REIT. The correction was predictable in the context of rising rates: REITs should be considered as rate-sensitive equities… I consider that at $40, Realty Income is a real opportunity: they have been paying dividends for 44 years, the company has been listed since 1994, currently only 5.4% with 142% of dividend growth since 1994 thanks to a portfolio of 3600 properties and an occupancy rate of 98%. Of course, the pay-out ratio is a little high (85-95% as for all REITs), but that is the principle of real estate. As a reminder, the pay-out ratio of a REIT is measured from AFFO and not EPS.

 

See you soon for the publication of my latest movements and the monthly performance

[Jerome]

Yes indeed, the market has proven AbbVie right, for now at least... for the future, that remains to be confirmed!

As for Realty Income, I've been watching it for a long time, but I've never taken the plunge. I don't know why I have preconceptions about this type of investment. Your post makes me think... Only fools don't change their minds.

[Lopazz]

I think you would be right to create a small line, it would also bring diversification into real estate to your portfolio.

 

I also recommend you take a look at Bank of Nova Scotia (BNS), listed in CAD in Toronto

[Jerome]

in real estate I have PAXN (Ex-US strategy), but it's true that I have few shares in real estate in general, because I already have physical real estate

I still have a recurring problem with Realty Income, it's the payout ratio: you're talking about 90%, like all REITs, but it's always been a gray area for me because for these REITs precisely, and Realty Income in particular, I find monstrous payouts everywhere on the net (from 200 to 300%)

 

I already like BNS better, I know it and I've been eyeing it for a while... I'll look into possibly adding it to the GDG 

 

 

[Lopazz]

This is because you calculate your POR from the EPS, whereas you should measure from the AFFO:

 

http://www.realtyincome.com/discover/dividends-from-realty-income/realty-income-dividend-paying-ability.shtml

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