Aussie "Dividend Aristocrats" and How to Find Them

Discussion in 'Share Investing Strategies, Theories & Education' started by Nodrog, 8th Aug, 2016.

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  1. izzy16

    izzy16 Well-Known Member

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    Is there any benefit to investing directly with these "dividend aristocrats" vs LICs that have similar yields / dividend growth? Is it mainly in the hopes of capital appreciation over time?

    I'm tempted to put money into Telstra with it being at a 3 year low with strong div history but not sure why I would do that over an industrial-focused LIC like WHF if the yields are similar?
     
  2. Chris Au

    Chris Au Well-Known Member

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    While I haven't looked specifically into Telstra, I would be more inclined to leave the management up to those who are experts and in the market day in day out, particularly if there isn't a stark difference in take homes.

    I am moving out of my small bundle of direct shares as I'm wanting these investments to be more passive without me having 'doh' moments because I didn't see a downward trend for a company, which dragged the share price, dividends, whatever down with it.

    It depends on how active you want to be, and/or if you see this (or whatever) company having sustained growth to be still relevant in the market into the future.
     
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  3. Zenith Chaos

    Zenith Chaos Well-Known Member

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    + Reduced fees
    - No diversification, over concentration
     
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  4. Perthguy

    Perthguy Well-Known Member

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    Personally I would prefer WHF. LICs are still dome work but I see them as less risky. Of course for this I will pay a fee but I don't think the fee is unreasonable for what the LIC provides. It comes down to how involved you really want to be picking shares and monitoring individual company performance. I don't have much interest in doing that so my plan is to invest in LICs and ETFs.
     
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  5. Swuzz

    Swuzz Well-Known Member

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    I think CPU is worth a mention in this thread
     
  6. dunno

    dunno Well-Known Member

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    Premier Investments reported today.

    Dividend performance has greatly increased since selling Coles Myer and Buying Just Group.

    upload_2017-9-25_13-6-2.png

    They have enough retained earnings, franking credits and debt headroom on the balance sheet to pay a special $4.36 Fully Franked dividend if they were inclined too.


    They also have Smiggle growing quickly internationally with returns well above cost of capital to drive future dividend growth. However, fashion and fads being fickle the good run could come under pressure at any stage and PMV’s ability to adapt and continue to grow dividends would come down to management skill and culture.
     
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  7. Ynot

    Ynot Well-Known Member

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    What's DGI please?
     
  8. The Falcon

    The Falcon Well-Known Member

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    Dividend Growth Investing
     
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  9. Gockie

    Gockie Life is good ☺️ Premium Member

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    This has been a great thread that completely stayed on track. Well done people!

    As a result of reading this thread again:
    1. I might buy a few AUI just in case they have some share rights offer down the track. (I've got MLT, BKI, ARG and WHT and direct shares already). Edit: I just checked and missed the dividends for this half year. So no rush to buy it. Yes, it can increase in value in the meantime, but knowing it will be a half year till the next lot of dividends is a bit of a bugger. Looks like only 1 parcel was traded yesterday too. So it is truly thinly traded.

    2. I'm wondering if a lender will let me pull equity from an IP to invest in shares. I've increased my salary recently and it sounds like bank lending has loosened. Giving all financial details to lenders is painful, I'll talk with them anyway though.

    For debt recycling, my partner won't let me do the borrowing against the PPOR, but there's nothing stopping me doing it against an IP except my borrowing capacity. I shall see.

    I've also committed to putting extra into super, I gave the instruction to put an additional $1000 pretax per month into my super. That plus the normal 9.5% will take me to nearly 25k into super pa.

    Anybody have any thoughts on the above? I'm 41.
     
    Last edited: 10th Mar, 2018
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes this is possible as long as you can service. Depending on the amounts involved and the lender they may ask for the 'letter from a financial planner' ********.
     
  11. Redwing

    Redwing Well-Known Member

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    BKI report mentioned: there are almost 500 companies in the S&P/ASX All Ordinaries Index. Since the year 2000, only three of them have managed to increase their dividend every year. Only three . . . Ramsay Healthcare Ltd, Woolworths Ltd and Washington H Soul Pattinson and Company Ltd, back in 2015, so just had a quick look on share dividends site for an update

    Woolworths

    upload_2018-3-10_8-0-55.png


    SOL was an odd chart

    upload_2018-3-10_8-4-57.png

    And Ramsay

    upload_2018-3-10_8-5-44.png
     

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  12. Butterfly88

    Butterfly88 Well-Known Member

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  13. Butterfly88

    Butterfly88 Well-Known Member

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    Hi there Linda. We've just done exactly this. Had to jump through quite a few hoops though. "Letter from accountant" three times. Payslips, rental statements etc etc etc etc etc. Quite a bit of back and forth. Started out applying with AMP but ended up using CBA. Thanks @Rolf Latham.
     
  14. KittyCat

    KittyCat Well-Known Member

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    I know this is a very old post but thank you Nodrog. This is probably the most inspiring story I have read in PC to date. Sounds like you and your wife made big sacrifices and worked hard for your achievements. Congrats to both of you and thank you for sharing all that you do.
     
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