AIR - Air NZ.

[Balance]

Some kind soul took out my cheeky bid at $2.00. Very happy to invest more at that price and get a sustainable gross dividend yield of 27.78 / 200 = 13.89%

Already up 3.5% tax free - so equivalent to leaving in the bank for 2 years to get that kind of return for those risk adverse!

[winner69]

Arbroath ......I'm not making any comment on whether a dividend stripping strategy will work here with AIR but usually it requires buying 2-4 weeks before dividend and holding for a few weeks after...........

That's how I approach dividend stripping - when i play this game i buy about 2 weeks before the announcement and sell about 2 weeks after ex div.

This time around real bonanza with AIR. - 35 cent divie and maybe not even a cap loss (12 cebts at moment)

Back testing

Sept 14 - divie 15.5 and share down 2 = BRILLIANT
Mar 15 - divie 6.5 share up 14 = MORE THAN BRILLIANT
Sep 15 - divie 9.5 share down 20 = BIT SAD
Mar 16 - divie 10 share down 1 = PRETTY GOOD
Sep 16 - way its heading = AWESOME

as pointed out by somebody last week good things don't continue for ever so next March?

[QOH]

Roger can you or some other maths genius please tell me what amount will go into my bank account on 10000 AIR shares and my tax rate is 17.5%. I want to mentally spend it today.

[777]

Roger can you or some other maths genius please tell me what amount will go into my bank account on 10000 AIR shares and my tax rate is 17.5%. I want to mentally spend it today.

The same as everyone else...

10000*.35/.72*.67=3,256.95.

Gross dividend will be 4,861.11
Imputation credit 1,361.11
Tax withheld 243.05

Net paid 3,256.95

File it in your tax return next year and your final tax will be 850.69(4861.11*.175). Refund will be 1361.11+243.05-850.69=753.47.

As Roger has mentioned you need to be paying enough tax to get all your imputation credit but if not then you can carry it forward to future years.

[winner69]

?....... Bob's your Uncle

No no mate - with AIR its 'Rob's your Uncle'

[QOH]

The same as everyone else...

10000*.35/.72*.67=3,256.95.

Gross dividend will be 4,861.11
Imputation credit 1,361.11
Tax withheld 243.05

Net paid 3,256.95

File it in your tax return next year and your final tax will be 850.69(4861.11*.175). Refund will be 1361.11+243.05-850.69=753.47.

As Roger has mentioned you need to be paying enough tax to get all your imputation credit but if not then you can carry it forward to future years.

Thanks very much.

[Beagle]

Isn't life grand. People on a 17.5% tax rate can milk the extra 10.5% tax credit the company has imputed through the dividend imputation system with fully imputed dividends at 28%. The IRD used to have a saying, "its our job to be fair", they don't use that punchline any more but in this particular instance I think its more than appropriate, enjoy

What's that American airline index thingy again that some of you guys follow and how much was it up on Wall Street yesterday ?

Who wants the pleasure of working out Couta1's forthcoming dividend on 370,000 shares ?

[workingdad]

Seems a lot of debate on AIR. Should we do a poll on SP ex divvy.

I think SP with be 2.35 to 2.40 prior and drop to 2.05 to 2.10 range ex.

Let me know if there's interest and I will start one

Not too far off on the estimate (29th Aug) - nice change after having a few over the last 6 months with AIR not quite being on par.....

[777]

Isn't life grand. People on a 17.5% tax rate can milk the extra 10.5% tax credit the company has imputed through the dividend imputation system with fully imputed dividends at 28%. The IRD used to have a saying, "its our job to be fair", they don't use that punchline any more but in this particular instance I think its more than appropriate, enjoy

What's that American airline index thingy again that some of you guys follow and how much was it up on Wall Street yesterday ?

Who wants the pleasure of working out Couta1's forthcoming dividend on 370,000 shares ?

=37*3256.95=120,507.15.


Or about 57,797 more AIR shares

[Beagle]

=37*3256.95=120,507.15.


Or about 57,797 more AIR shares

LOL yes that reminds me where's my e.mail from Couta1 this morning....there it is "added 51K more shares at $2.01 average, now holding 420K shares at $1.94 average price ex divvy. Well positioned and "gonads" have grown even bigger. At $2.08 last time I looked I make our friend as being in the green by a whopping $58,800 ! Who said averaging down doesn't work !! Couldn't happen to a nicer guy !

My reply is unprintable on this forum but something along the lines of how do you walk or ski with @#$lls that big ? Guess he takes the be strong and courageous stuff in the Bible literally !

He reckons it'll be back in the 220's in no time...I'm starting to think he might be a guru prophet.