High Yielding Shares Again

Not sure if this is directed at me?

Yes, I make much better returns with property developing and property will always be in the major part of my investment strategy, however there is much more work involved in this process and on average each development from beginning to end takes at least 12 months. Also I don't want to continue accumulating property more work/headaches, tenants etc.

I like the idea of diversification and mix it with shares, nice passive investment, this way if property happens to tank I have shares that may happen to be rising.

MTR:)
 
random said:
Just wondering well always wondered actually.
If people have accumulated some good wealth during their lives in whatever field they're in , why do they wanna mess around with the stress of shares and 4% stuff ?
Seems you must be very good at whatever you've been doing , why not stick with that ?

Like say your area had always been property , just sayin, as an example . You could easily set up something with a much better return , even with enough leeway allowing for downturns .

Or , now l ask bc l wouldn't really know but , couldn't you do 4% or better in a nice safe bank account somewhere, with a decent lump sum like some guys are talking here ?
Click to expand...

I may be good at my job and earning some income but there will come a time that I wish to cease my job and live off a return which involves me doing nothing except turn on the computer once in a while.

And 3-4 % is a safe yield to think about with regards to the lump sum that is used to generate a return for ever. So in today's values, assuming you need 100k income a year, then you need 3mil of income producing assets be it shares or property.

And bank account is no good because if you need the return for 40 years, inflation and taxes will eat away all.

And this thread has been excellent - I have learnt a lot about LICs that I did not know about before. Will try ETF first and observe for LIC discounts to NTA.
 
Thanks guys. No not directed at anyone in particular.
What about a dirty big warehouse or storage of some description. Guess all you'd need would be a manager to look after it ?
Although l hear you , it is amazing with shares in that you basically just press a button , broker whatever , scary at how easy it is.
 
On individual stocks it looks like those with the current highest yields (above 5%) are:

CFS RETAIL PROPERTY
INSURANCE AUSTRALIA
WORLEYPARSONS
COCA-COLA AMATIL
WOODSIDE PETROLEUM
FORTESCUE METALS
NATIONAL AUSTRALIA BANK
TELSTRA
SYDNEY AIRPORT
ANZ BANKING
SUNCORP
WESTPAC BANKING
GPT GROUP
COMMONWEALTH BANK AUS
WESFARMERS
TOLL HOLDINGS
ASX
ORICA
Click to expand...

Stocks with the highest dividend yields may not always generate the best overall performance, but it's interesting to look at the list nonetheless
 
redwing said:
On individual stocks it looks like those with the current highest yields (above 5%) are:



Stocks with the highest dividend yields may not always generate the best overall performance, but it's interesting to look at the list nonetheless
Click to expand...

9 of those make up my portfolio, all 100% Franked. I've added a small holding of BEN and BOQ as well which are just outside the top 50, but at PP, yield over 5.5%.

I think the little dip a couple of weeks ago put RIO and BHP around the 4.5% mark on expected 2015 divided, but I was a bit hesitant to pull the trigger. We shall see what the next few months brings and see if there is another opportunity at those PP/yield if I add them.

pinkboy
 
gnokkybbob said:
Anyone here recommends ETF low cost index fund?
Click to expand...

There's been a couple of comments about the quality of Vanguard's offerings in this type of product thus far. Maybe worth having a look back through the thread and reporting your findings?

I'm not trying to be a *****. As a dumb guy, I've always found the best way to get smart people to answer your questions is to do your own research, formulate your own draft answer, then submit it for their assessment :).
 
BHP


Hi China

How are things going now?
 
Help

Can someone help - using plain english?

I have been looking at buying into the Vanguard US Total Market Idex fund (VTSAX). However, in trying to do so it seems apparent that only citizens of the USofA can buy that fund?
However, us lowly aliens, can buy the Vanguard US total market ETF (VTI).

From what I can see the returns historically are nearly exactly the same - however - the ETF unit price is approx double the index fund price ($49 vs $102).

Can someone explain to me in fairly plain english the difference between an index fund and an ETF?

Cheers

Blacky
 
Blacky my uneducated guess would be that the 2 are identical , just called different things in different places. Thr price difference would be simply explained by difference in quantity of total shares/units
 
The index fund is just that it follows an index like the Dow Jones DJI, All ordinaries XAO what ever the index is and owns and adjusts the same amount of shares of that index.
Hope I make sense.
 
Blacky said:
Can someone help - using plain english?
Click to expand...

Hi Blacky

From Vanguard

Choosing between ETFs and traditional index funds

Vanguard's ETFs are one of two ways to invest with us, you can also use our traditional index managed funds. Vanguard has been managing investments for more than 10 years for Australians. Our ETFs and their equivalent managed index funds own the same underlying assets. So for investors, it comes down to which method best suits your particular circumstances.

When deciding between and ETF or traditional fund, you should consider:

  • If you have, or are prepared to open, an account with a sharemarket broker. You will need a brokerage account to buy and sell ETFs. If you invest using a financial planner, they can access either index managed funds or ETFs via administration platforms such as master trusts and wrap access.
  • How often you invest. Brokerage fees apply when buying ETFs on the sharemarket, however contributions to a traditional (managed) index fund do not attract any fees (other than the applicable entry and exit spreads). So ETFs may not suit investors who make ongoing, small contributions.
  • The importance of trading to you. Trading flexibility is a key benefit of ETFs, but if this flexibility is not important to you the added brokerage costs of investing in ETFs may not be worthwhile for you.
Click to expand...

Exchange Traded Funds are suited to investors who:

Have an ASX broker account
make large or irregular investments
require trading flexibility
Click to expand...

Managed index funds are suited to investors who:

Do not have an ASX broker account
make ongoing, small contributions
do not require trading flexibility
Click to expand...

Large ETF providers in Australia are

BlackRock
State Street Global Advisors
Vanguard

Hope that helps
 
Last edited:
redwing said:
Hope that helps
Exchange Traded Funds are suited to investors who:

Have an ASX broker account
make large or irregular investments
require trading flexibility

Managed index funds are suited to investors who:

Do not have an ASX broker account
make ongoing, small contributions
do not require trading flexibility
Click to expand...
Click to expand...

One of the other advantages of ETF is it is more tax efficient than normal index fund due to the in-kind transactions that ETF does with the underlying fund.

You can find more details here

Secondly, again I could be wrong but by buying ETF's through stockbroker I can arrange margin loan with stockbroker and use some leverage to increase my overall portfolio returns which I am not sure how easy it is to do with index funds.

Cheers,
Oracle.
 
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