[Lopazz]

I agree with you.

But in my case, the ABT + ABBT line represents about 1.5% of my portfolio.

So I prefer to keep it, but if it was higher than 5% I would certainly have made a decision on the file. In the meantime, as long as I continue to abound in cash, there is nothing better to do than to let the price appreciate and collect the small quarterly dividends...

[Lopazz]

As for me, I kept both, and if I reinforce, I will reinforce both 50/50. 

[Lopazz]

jean-louis said
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?

For Swiss shareholders I don't know, but in France they are taxed identically, so certainly the same way in Switzerland.

 

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?

For tax reasons I do not invest in Switzerland: the withholding tax of 37.5% for a French tax resident is much too high for my taste. I cannot advise you on these securities.

Jean-Louis

 

[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

[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

[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

[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

[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.

[Lopazz]

So you sold? Surprising of you.

 

In this period where rates are so low, an increase in yield above 3% for US markets, and therefore a drop in the price (and the PER) is in my opinion difficult to imagine. It is difficult to accept buying stocks that pay less than 3% in gross dividends for us French residents, who receive 3.40% almost net via life insurance euro funds. So for the time being, I am staying in "Hold", and am consoled by looking at the pay-out ratio of the companies in which I have invested, which gives hope for a future increase in yield and price, and I tell myself that in any case if I were to realize my nice capital gain, I would pay a big packet of taxes (since I am already heavily taxed)...

 

That said, I think there are still good investments to be made in France. I don't have much time at the moment to study neighboring countries (thanks Jean-Louis for your analysis on Switzerland, but fiscally the investment there is unfavorable for non-residents), but I see in some stocks like Total, Vinci, Bic, Casino, Rallye, good investment opportunities. I am deliberately not mentioning Axa because I am not in the habit of investing in financial companies or insurance companies (except perhaps the purchase of MUV2 or BRK which is programmed for a possible decline), but I think the potential is there too. Let's not forget that the PEA envelope is fiscally very advantageous for the French taxpayer; I have also made a date with Altaprofits with their Titres@Vie contract to place the surplus of French stocks there.

 

The idea of building a small building, financed on credit, to make up the land deficit without having to worry about maintenance work or co-ownership is teasing me more and more (I currently have an old property portfolio, which is entirely for sale). Given the low rates and my good borrowing capacity, I think I will soon move on to the business plan!

 

What is your opinion on my investment policy?

[Lopazz]

Same, I'm currently thinking about selling to buy back cheaply later. According to Ben Graham's 4 criteria, the Shiller P/E and the total market cap / GDP ratio, the market is overvalued. What do you think?

[Lopazz]

1592

[Lopazz]

Jerome said
mmhhh… I'll try to make it up to you!

I'm looking into a new thing

Look into integrating Google Adword's "display" network to generate revenue through your website. You risk lowering the site's traffic by charging for access to one of its main features: your algorithm.

[Lopazz]

Of course it's worth it, but it's still a shame, especially when you've already contributed by buying the e-book... 😕

[Lopazz]

you reinforce basic consumption and vice

 

Surely because I think that vice is a basic consumption 😉

[Lopazz]

As for me, I am considering an expatriation in the medium/short term. Belgium, US, HK, or Dubai. I am in the process of liquidating my real estate assets in France, and I am waiting for the (near) end of my biggest professional contract. 

Harmonie Gestion declared
Good evening,
I could see that some members of this forum were French residents. By the way, I regret that this forum, given its quality, does not attract more people, although it is much more interesting and rich in information than most forums that gather an impressive number of members but which do not contribute anything.
Concerning those of you paying your taxes in France and investing in companies with growing dividends, I would like to know how you see the future, your future strategy in view of this current confiscatory taxation which will undoubtedly increase. Even in a very long-term perspective by practically never selling your shares, the taxation on dividends when you benefit from comfortable income from work will become dramatic from my point of view. What do you think?

 

[Author]

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