[Jerome]

Um, where are you based??? How can you be taxed on a dividend in this case? It is not an exceptional dividend but a spin-off, namely that the former Abbott company is split in two, at the same time as its capital, distributed between the two new companies ABT and ABBV. There is no reason to tax this separation.

 

I sold ABBV with a slight capital gain, which I partially ate up in sales and ABT buyback fees. It's not my usual style of trading like that, but if I want to be consistent with my strategy, it's the only way. And let's say it right away, spin-offs are fortunately rare, because I personally don't like them. In the end, by selling ABBV to buy back ABT, it's as if there had been a simple split of my ABTs, accounting-wise. Of course, the "ABT" stock is no longer quite the same as it was last year...

[Jerome]

My decision is made: I sold ABBV and bought the equivalent of ABT.

[Jerome]

I have to say that this spin-off bothers me quite a bit. ABT and ABBV are certainly good stocks but their split takes them out of the scope of my Global Dividend Growers strategy. 

ABBV as a new stock has no dividend history and ABT due to the split sees its dividend cut in half. It is true that this last cut is only "virtual" due to the spin-off but it still bothers me.

In short, my brain is boiling over this case these days and I imagine all the plans, including settling these two lines.

Too bad Abbott didn't stay Abbott...

[Jerome]

ah well done, great mentality Lopazz! 😉

[Jerome]

It's funny to note that Belgium, although the seat of the European institutions, is gradually taking Switzerland's place among the countries described as "tax havens" 😕

[Jerome]

And as they often say in the stock market:

– The trend is your ally

– Buy low and sell high

– You never catch a falling knife.

In short, all this contradicts itself, but it is all right and wrong at the same time...

[Jerome]

Hi Astyx

 

I am always wary of technical analysis because the author always sees what he wants to see. We can find trends on several axes and over different time periods. In addition, it very often happens that the price passes through this axis briefly before going up or down. Finally, and perhaps especially in my case, we only talk about the price, which historically represents only 50% of stock market performance. We forget about dividends!

 

For me, Air Liquide still has a good profitability/risk ratio.

[Jerome]

at my place it's +0% on ABT and -44% on Abbvie, banks do pretty much what they want apparently

It must be said that in Switzerland capital gains are not taxed so there are not too many consequences.

I had already noticed in the past some oddities in the methods of calculating capital gains.

[Jerome]

Maybe the frequency is only annual instead of quarterly??? That would seem surprising to me, but hey... in that case I see even less advantage! 

[Jerome]

Thanks for your reply. I had thought about the frequency of dividend distribution and taxation but if these elements are identical then indeed there is no advantage in buying the copy.

 

Jean-Louis

 

[Jerome]

Ok, I understand. I called Computershare to ask if we could participate in the Clorox DSPP from Switzerland. They said that we certainly could and that they would send me the documents. But I only received the financial reports from CLX and no documents to register… So I then wrote an email to Computershare who said they could not respond by email . On their site there is no way to register without information such as Social Security number. In short, I give up. At Novartis it seems simpler to me.

Jean-Louis

[Jerome]

Thank you for your reply, dear Jerome. I am learning a lot from your site!

Dividend reinvestment plans seemed to me to be a good match for a strategy focused on growing dividends. They allow for exponential growth of income in the case of a long-term investment (assuming long-term stability or growth of dividends). In addition, you avoid brokerage fees and sleep "on both ears", well almost.

My intention was to invest 5,000 to 10,000 chf and let it work at Clorox through the DSPP. The rest of my portfolio consists of Swiss stocks in various fields. What do you think?

Thank you and have a good evening.

Jean-Louis

[Author]

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