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19-11-2014, 02:14 PM
#1011
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19-11-2014, 02:24 PM
#1012
It's positive, even without off setting the interest. Of course this assumes 16 cents a share dividend.
Now, I haven't received chorus dividends for over a year so bad things can happen. I miss my 25.5 cents per chorus share desperately.
Edit: re Brends post. Interest is 5.89% net dividends 7.4%
Last edited by Bobdn; 19-11-2014 at 02:27 PM.
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19-11-2014, 02:32 PM
#1013
Originally Posted by Roger
Those are net yields mate. I don't know about the others but in Genesis case its fully imputed so you need to divide the net yield by 0.72 to account for the 28% full imputation credit attached so I get a gross yield of 10.19% at $2.18. Even at closing price today of $2.21 based on a gross dividend of 22.22 cents incl of imputation credits that's still over 10% (10.05%) and that's only paying out 80% of forecasted profit and there's no need to build new generation capacity for many years. Plenty of rumours in the market about capacity for special dividends and why not !! We know the government like special divvy's, see recent example of whopping AIR special divvy of 10 cps, that was really tasty, what chance of a repeat with GNE
Roger gross yields above mean dividends should easliy cover your loan
one step ahead of the herd
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19-11-2014, 02:42 PM
#1014
Originally Posted by Bobdn
It's positive, even without off setting the interest. Of course this assumes 16 cents a share dividend.
Now, I haven't received chorus dividends for over a year so bad things can happen. I miss my 25.5 cents per chorus share desperately.
Edit: re Brends post. Interest is 5.89% net dividends 7.4%
One potential issue is that imputation credits are not refundable. So if you have no other taxable income, the imputation credits may be carried forward, not refunded.
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19-11-2014, 02:48 PM
#1015
lets hope hes holding the shares in an individual name with other income (PAYE), not a trust with no other income :/
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19-11-2014, 02:55 PM
#1016
That describes me exactly. I could have bought a rental property I suppose but at least this way I get a similar return but don't have to worry about tenants turning the property into a meth house.
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19-11-2014, 02:57 PM
#1017
Originally Posted by Bobdn
It's positive, even without off setting the interest. Of course this assumes 16 cents a share dividend.
Now, I haven't received chorus dividends for over a year so bad things can happen. I miss my 25.5 cents per chorus share desperately.
Edit: re Brends post. Interest is 5.89% net dividends 7.4%
Your net interest will be 3.95% after you take 33% off 5.89% assuming your on the top tax rate so plenty of fat left over with 3.45% to spare.
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19-11-2014, 03:00 PM
#1018
Cool, thanks for the info Couta
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19-11-2014, 04:01 PM
#1019
Originally Posted by bull....
Roger gross yields above mean dividends should easliy cover your loan
Not my loan, (I'm mortgage free) but yes Bobdn should be well covered.
Originally Posted by Harvey Specter
One potential issue is that imputation credits are not refundable. So if you have no other taxable income, the imputation credits may be carried forward, not refunded.
Absolutely correct.
Originally Posted by Bobdn
That describes me exactly. I could have bought a rental property I suppose but at least this way I get a similar return but don't have to worry about tenants turning the property into a meth house.
Dead right but there's no harm in spreading it around a bit mate. That's another advantage of investing in shares as opposed to placing your trust in some stranger renting one's grossly over-priced house. I think HNZ has a similar gross divvy this year with better prospects for dividend and SP growth IMHO. I am tempted to gear-up on HNZ but probably won't because I'm a conservative old number cruncher
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19-11-2014, 04:37 PM
#1020
Originally Posted by Roger
Dead right but there's no harm in spreading it around a bit mate. That's another advantage of investing in shares as opposed to placing your trust in some stranger renting one's grossly over-priced house. I think HNZ has a similar gross divvy this year with better prospects for dividend and SP growth IMHO. I am tempted to gear-up on HNZ but probably won't because I'm a conservative old number cruncher
I think thats good advice. There is a few good yeild stocks which would make this a good strategy, HNZ being one of them. I wouldn't put all my eggs in one basket on a leveraged investment - you might end up with Couta and end up holding onto Chorus :0
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