[Jerome]

The games are over… See you on November 8th

[Jerome]

Bien sûr KO, n’est pas aussi intéressant qu’il y a 2 ou 3 ans, mais ça reste une sacrée belle valeur, surtout sur la durée. De plus le titre a corrigé à la baisse ces derniers mois, donc je peux comprendre le renforcement de position. 

[Jerome]

the fall is almost already compensated, but it remains a very interesting title… It could very well be that I will get into it soon.

[Jerome]

Excellent post and so realistic…

Fortunately in Switzerland we are a little less eaten up by the State, but we have to keep an eye on things...

[Jerome]

We have already talked about ABT here at the time.

Since then I have changed my mind. I would have been better off selling both, ABBV and ABT. You are always smarter afterward… I must say that this split story really bothered me because it disrupted my strategy, finding me with two unknown stocks. I regret that the company decided to split in two. At least I would know what to expect the next time a stock that offers increasing dividends splits. Hopefully there won't be any more!

You're right, this title is no longer in line with the GDG. I've been thinking about removing it from the strategy for some time, and even selling it. This will happen soon... I'll write a short article on this occasion.

[Jerome]

I am also interested in real estate securities. I have two questions that you could perhaps answer or give your opinion on:

 

1. How are dividends from US REITS taxed for shareholders in Switzerland? Is this the same as the taxation of “ordinary” dividends?

 

2. I am interested in Swiss real estate companies such as Warteck, Intershop or Swiss Prime Site? Their dividends are regular, the yield is between 4% and 6% and the betas all <0.6. These companies seem to me to be rather good deals, but possibly an increase in mortgage rates could make their prices even more attractive. What do you think?

 

Jean-Louis

[Jerome]

@Copycat, thank you, you are right, indeed there is no comparison. And Birdie's last post confirms it.

I find Birdie's presentation excellent and I am reproducing its structure below with the two brokers that I know:

Deposit fees

I have been using Migros Bank for a very long time, but as my capital increased, I gradually became more and more nervous about the deposit fees they have. At first you don't realize it, but over the years it becomes really prohibitive, especially since there is no limit! I also tried to contact them, but nothing doing. So I started to transfer my assets to Postfinance. They contributed CHF 800 to the transfer fees. And with them the fees are TOTALLY free. I can tell you that it is very appreciable, especially when you have a well-stocked portfolio, with few transactions. It is true that compared to Swissquote the purchase/sale fees are a little higher, but in my situation it does not bother me, quite the contrary.

Lombard Credit

Neither at Migros Bank nor at Postfinance. Which doesn't bother me, I don't need this service.

Tax declaration

Thanks Birdie for coming to this topic because this story is always a big scam... Migros Bank charges monstrous rates. I prefer to manage on my own using the annual closing papers and the free software provided by the tax department. It requires a lot of work, especially because of the dividends. But I don't want to pay several hundred francs for just a paper of a few pages. As for the post office, I haven't tried it yet. 

Opening of values

Many values are not initially open for online trading on Banque Migros when looking for less popular foreign securities. On the other hand, they are not annoying, you just have to make a very simple online request and within 24 hours they open the position. If you are in a hurry you can go by phone. But less is enough for me like this. For Postfinance for the moment what I noticed is that you cannot make purchases on NYSE Arca. I asked them to open the value for online trading, but it is not possible. To be transmitted via telephone order… too bad.

Registration in the register of shareholders

No problem with Migros Bank, free of course. Postfinance, unless I'm mistaken, it's identical.

User-friendliness of the website

For what I do, Migros Bank and Postfinance are fine for me. But for fans of charts and technical analysis, this may not be enough...

Customer Service

Excellent at both. I found the Postfinance hotline (24/24) really very professional. For Banque Migros it was my advisor who called me. So nothing to complain about.

Also account in EUR, USD

At Swissquote my account is in CHF only which means that I suffer an exchange rate effect with each purchase AND sale of foreign shares, thus increasing my exchange rate risk. At Tradedirect, I have a multi-currency account which allows me to keep the currency when I sell a share or when I transfer from CHF to USD/EUR.

Purchase and sale slips

Generated in pdf or paper (your choice) on Banque Migros. For Postfinance it seems to me it is exclusively online, but to tell the truth I have not really looked for the option for the paper version which does not interest me.

Year-end recap

No summary as explained by Birdie for Migros Bank. For Postfinance I don't know yet.

Trade policy

Migros Bank and Postfinance are absolutely correct from this point of view. They are reliable and trustworthy partners.

USD/CHF/EUR accounts

By default only a CHF account at Migros bank linked to the deposit account => therefore currency conversion for each dividend received. For Postfinance automatic opening, accounts in the three currencies are free.

In summary, I am happy with both, but it is really a shame about the Migros Bank policy regarding custody fees that are dissuasive for large portfolios. The big plus of Postfinance is the free ancillary services and deposit fees. There is no comparison here... no hidden fees and bad surprises.

There is also something that we have not talked about: the fees for paying money from the securities liquidity account… always useful when you are (or will be) a rentier. Many brokers charge fees when you pay money into these accounts. This is obviously not the case at Postfinance and Banque Migros.

[Jerome]

And there you have it, Cédric won, by guessing the closing value of the CAC almost right (3927 instead of 3933.78).

It had to be done a month and a half in advance. 

Cedric, since you are already a subscriber, I will extend your subscription for another year. Congratulations.

[Jerome]

Thanks for the info. It's interesting but it's outside of my three existing strategies. But it gives me some food for thought for the future... consider a strategy based on REITs and/or MLPs. It will nevertheless require a bit of research/design and implementation work. So it's music for the future.

FYI I added BNS to the Global Dividend Growers.

A++

[Jerome]

Thanks for this interesting post dom67

I have recently become a user of Postfinance, which I find good for my situation, with few orders placed and a well-stocked portfolio.

I also know Banque Migros, which is also good, except that the deposit fees are really too high because they are not capped. And then it is true that the flat rate requires you to place large orders. And that is even why it is interesting.

Swissquote has a very good reputation and on paper it looks good too, but I don't know it as a user.

I don't know Stratéo at all...

Surprisingly none of these tests mention tradedirect, formerly e-sider, with Banque Cantonale Vaudoise acting as a deposit, it is also a fairly good compromise in my opinion.

[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 

 

 

[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.

[Jerome]

sorry kienast, but you had to participate until July 21st 😥

it will be for next time!

[Jerome]

We are 10 days away from the deadline and the result looks set to be close! Several participants within a handkerchief!

savanedede in the lead for now… but the others are not far behind 😉

[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.

[Author]

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