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  • in reply to: Advance Taxation of Dividends at Interactive Brokers #19391
    Jerome
    Keymaster

      Hi Jean-Louis
      I have been using their services for a year and a half and I find them great. The fees are minimal.
      I'm talking about it here in relation to auto signal trading, but it also applies largely to more traditional investing:

      Using Interactive Brokers with Trading Auto Signal


      Regarding the withholding tax, there is only US withholding since it is a company under American law. It is up to you to decide whether you still want to declare in Switzerland.
      The FATCA tax information exchange was scheduled in both directions USA-CH normally for very soon but with the arrival of Trump that may well change. So we might want to take the risk.
      Personally, I prefer to be fair because I think that in the long term it is difficult to escape it.

      in reply to: Unilever: which market? #19388
      Jerome
      Keymaster

        No withholding tax on dividends

        in reply to: Unilever: which market? #19385
        Jerome
        Keymaster

          My principle is to always buy on the source market. In this case, as it is a British and Dutch company, preference should be given to London to benefit from the attractive tax regime on dividends.

          in reply to: Copycat Portfolio #19383
          Jerome
          Keymaster

            eh eh you also let yourself be tempted by the legendary IBM 🙂

            in reply to: Questions when starting out in the stock market #19378
            Jerome
            Keymaster

              Yes it's true, feedback from Mira would be welcome. 🙂

              in reply to: Dividend taxation #19317
              Jerome
              Keymaster

                you have to go through the topic there is already several information on this subject, but the rule is always more or less the same 15% non-recoverable and between 10-15% recoverable via annual taxation
                for Swiss dividends, the 35% are actually recoverable during taxation (will be taxed as income)

                in reply to: Dividend taxation #19311
                Jerome
                Keymaster

                  Hello Nathan
                  Yes, that's correct. I would like to point out, however, that even if the tax impact is real, it should not be overestimated, especially when compared to the potential long-term gains of such a strategy. With increasing dividends, we benefit from a less risky approach than investments in stocks that do not pay dividends and that beat the market in total performance, i.e. in capital and income.
                  Let's not forget that the strategy based on growing dividends does not seek high dividends, but rather moderate dividends that increase each year. Their companies only pay a prudent part of their profits. So the tax impact is moderate and we also benefit from a certain capital gain, which is interesting in Switzerland.
                  If you want to further reduce the tax impact, there is also the possibility of resorting to the Trading Auto Signal.

                  in reply to: Brokerage fees #19308
                  Jerome
                  Keymaster

                    Hi Thierry. Indeed, to start, it is better to attack with good growing dividends like Global Dividend Growers.
                    Even though the Postfinance interface is cumbersome and unclear, in my eyes they remain the best Swiss intermediary for buy and hold.
                    And we can always hope that they will improve it.

                    in reply to: My portfolio #19298
                    Jerome
                    Keymaster

                      Hello Nicolas
                      This is already a good start. For the rest, you should indeed enrich yourself with growing US dividends. Check out the best ratings of the different strategies on this site, especially, at the beginning, in the Global Dividend Growers.
                      To learn how to use the different strategies, go here:

                      Dividend Growth Strategies

                      in reply to: Dividend taxation #19283
                      Jerome
                      Keymaster

                        Indeed you are right, you have to be careful in IB to avoid borrowing, as the rates are so low and the “maneuver” is so easy.
                        Personally, I always make sure not to exceed my cash assets when I buy. It's a rule of conduct that I have imposed on myself... I have always been very careful and it is certainly due to my stock market experiences during the decade 2000-2010. Sometimes I happen to exceed my assets very slightly, by a few hundred francs, but it is mainly because I know roughly the amount of the order that I want to place and I do not rack my brains too much to do apothecary calculations, given the simplicity and almost free of charge of the process at IB.
                        As for your question, I cannot answer from experience, but in my opinion there is no reason for it to be taxed by the tax authorities or the AHV, since it is a capital gain, not taxable in Switzerland.

                        in reply to: Dividend taxation #19280
                        Jerome
                        Keymaster

                          It should be noted that this is valid for Switzerland. The French tax authorities are more vicious, so it is possible that they proceed differently... Even if it makes no sense to me.

                          in reply to: Dividend taxation #19275
                          Jerome
                          Keymaster

                            I have the same situation with several titles.
                            Taxation is always based on the payment date, which makes sense because the cash only appears in the account at that time.
                            But I don't really see what difference it makes in the end, you'll have to pay tax one year or another anyway.
                            Unless, as you say, you want to sell before the dividend, to keep the capital gain and not be taxed on the distributions (a strategy that is only valid if you are Swiss, therefore not taxed on the capital gain). But in this case you don't care about the year, since you are selling before the ex-date anyway. And in the long term I don't think selling to avoid being taxed on a dividend is productive.
                            Note that on IB you can configure your reports and you can indicate each position separately on your tax return.

                            in reply to: Pessimism about the US stock market #19210
                            Jerome
                            Keymaster

                              Hi

                              Clinton or Trump are certainly not brilliant, but their influence on the market should not be overestimated.

                              On the other hand, it is true, and I have been saying it for a long time, that the stock market is overvalued: http://www.dividendes.ch/evaluation-du-marche/

                              This is also why I started the Trading Auto Signal.

                              As for your question, I only started this dividend portfolio in 2010, so I don't have any examples to show you for years like 2000-2003 or 2008-2009.

                              On the other hand, if I adopted this strategy of increasing dividends, it is precisely because I experienced these two periods as an investor. And I even experienced them badly, like many others.

                              Dividend-growing stocks are known to hold up well in bear markets. The following articles will give you examples and explanations:

                              Growing dividends that beat the market (1/3)

                              Why are dividends so important?

                              The advantages of dividend payers

                              Why are growing dividends magical?

                              in reply to: New Postfinance E-Trading interface #19096
                              Jerome
                              Keymaster

                                No, I think this functionality is no longer possible because it was linked to the partnership they had with BCV, unless I'm mistaken.
                                It wouldn't like much anyway either.

                                in reply to: My portfolio #19081
                                Jerome
                                Keymaster

                                  There is no rule on this subject. There are stocks that beat the market for several decades and that actually do not seem to want to come back down to its height. There are others on the contrary that beat the market for a long time and that have fallen from very high, or even gone bankrupt.

                                  History is full of examples of companies that were thought to be above the fray and that collapsed. Think for example of Eastman Kodak which missed the technological turn of digital devices.

                                  Generally speaking, all technologies are subject to this problem. They ridicule the market for several years, then they collapse. This was once the case for Apple, which recovered when Steve Jobs returned and the iPods and iPhones were launched. And now we can perhaps imagine that this company will collapse again in the future. For now, it still has enormous resources, but it only needs to miss a technological turn, and boom.

                                  This could even be the case for Google, which we believe today to be unbeatable with its quasi-monopolistic position among search engines. All it takes is for a new way of surfing the net to come along and for Google to miss this turn and boom... Ok it seems impossible today, but it also seemed impossible at the time for Kodak (which was on the Dow Jones, let me remind you!).

                                  There is an incredible company on this subject, it is IBM:

                                  IBM (NYSE:IBM)


                                  It has already had to reinvent itself three times during its long history, and it is still here!

                                  In general, I generally avoid technos today because of this. Even if they are very tempting, it can backfire very quickly and it can hurt a lot.

                                  Pharmas are a bit of a "techno" apart. Of course, they can also miss a technological turn, but they are also in health goods, basic necessities and this is therefore an advantage in the long term because it is a defensive sector.

                                  In the end, a stock is not expensive or not because it beats the market or not, but in relation to its fundamentals. It can thus be very cheap even though it has been outperforming the market for ages.

                                Viewing 15 posts - 286 through 300 (of 582 total)