ANZ.NZX - Anyone holding?

[44wishlists]

Which is exactly what I do with ANZ. I buy when it reaches $28, then I sell when it's above $31. Not a massive profit, but always a good punt because if it goes south you get nice dividends, if it goes well, you get div plus profit.

I do the same as well. I tried to value the stock (and other banking stocks too) using different techinical analysis methods, however, probably due to my lack of knowledges and incompetence, banking stocks are too complicated for me. So none works. I then become lazy on reading banking stocks, and just buy when its price reaches $28, and sell above $31. And fingers cross, the results are so far so good.

[macduffy]

Wouldn't you miss out on some imputation credits on dividends for the likes of ANZ and Westpac?

No, the imputation credits - when they pay them - apply to NZ resident taxpayers regardless of which register the shares are held on.

[huxley]

Up 37.1% including DRP since purchase around Jan, 2016

Share price back at $34NZD

[Bobdn]

Up 37.1% including DRP since purchase around Jan, 2016

Share price back at $34NZD

Sort of, thanks to a slump in the NZD over the last few days. Hopefully a NZD will soon be worth 75 cents AUD like a few years back and we'll really be in the money

PS I bought some in January and February last year to average down a bit. Unfortunately I bought in at $32.40 in December 2014. A couple of months later it went to $37 and I felt on top of the world and then it sunk down to $24 so I picked up a few more. Average buy price is $28.39. It's been quite a journey.

[huxley]

What to do, eh? I guess there's an argument for buying and selling during the troughs and peaks (or at least buying during the lows).

Since I hold for the income, and I'm currently in the DRP, I guess a lower price is actually more attractive. But given my average buy in is $24.80 I'm pretty happy to have picked up a couple of parcels when I did.

I guess using the DRP might make you liable for tax? Hard to argue you weren't purchasing for capital gain if you never actually received an income while you held the stock... might just have to stick to a super long view after all..

[Bobdn]

What to do, eh? I guess there's an argument for buying and selling during the peaks and troughs (or at least buying during the lows).

Since I hold for the income, and I'm currently in the DRP, I guess a lower price is actually more attractive. But given my average buy in is $24.80 I'm pretty happy to have picked up a couple of parcels when I did.

I guess using the DRP might make you liable for tax? Hard to argue you weren't purchasing for capital gain if you never actually received an income while you held the stock... might just have to stick to a super long view after all..

The value of the shares you receive through a DRP is considered income, at least they are for my tax return each year I borrowed $40,000 to buy a parcel of ANZ shares (the $32.40 parcel!!) and claim a little bit of tax back. Will have it paid off in around 18 months. I should point out that just about everything I know on this subject I got on sharetrader and I'm pretty innumerate. I just trust everything I read here.

[huxley]

The value of the shares you receive through a DRP is considered income, at least they are for my tax return each year I borrowed $40,000 to buy a parcel of ANZ shares (the $32.40 parcel!!) and claim a little bit of tax back.

True, you always have to find a bit of cash to pay the RWT when you file your return.

[macduffy]

True, you always have to find a bit of cash to pay the RWT when you file your return.

I'm no tax expert but it seems to me that it's not the RWT that you're paying - if you are a New Zealand resident taxpayer. RWT is the (Aust) tax withheld at the time of payment. The additional (NZ) tax payable at return time is the amount assessed to "make up" the shortfall between the RWT already paid and the individual's tax liability for the year.

Incidentally, ANZ didn't deduct any RWT from recent dividends as they were fully (Aust) franked - so there will be (NZ) tax to pay on them at next return.

[Bobdn]

Big day tomorrow. Reading the SMH dividend expected to remain flat, fine by me.

ANZ is my second biggest holding after Genesis. Will try and get an early night tonight.

[Bobdn]

Wow, so the bank only makes 3.4B rather than the expected 3.5B and the market throws a tantrum. So childish.