My portfolio. Does this look ok?

Very interesting. Thanks for going to the trouble with that..


-Frank

 

Not as bad as AMP, which ended trading at $1.445.

It was trading at $6.70 in 2015. Ouch!

 

Well if it falls much further I wont be happy

Jokes aside - As a collector of stocks at present I'm happy that prices have fallen, it bodes well for those who are dollar-cost averaging into a diversified portfolio of predominantly cap weighted ETF's, which is my ongoing plan

 

How Long Does it Take to Make Your Money Back After a Bear Market? - A Wealth of Common Sense

 

Why? Run out of Underwear?

 

Hi Frank

I am glad to read that you have not invested the majority of your funds to date.

Where the market is now and what it potentially will do in the next month or so is one of those rare times that you can get >$75k dividends from the amount you mention invested in the right shares purchased at the right price.

I am a dividend investor with a bit of trading on the side. My view is you can't spend capital unless you sell (and pay the tax) so unless the sale price less the capital loss via tax is more than the dividends (or potential gain) are going to achieve over a determined time I don't sell.

I just happen to also have $1.2 to reinvest in my super and am planning to buy as many CBA shares as I can.

The number are astounding.

I am interested in CBA, CBA has been giving a consistent dividend of $4 for the last 5 years

at a price of $60 you will get 20,000 shares and potential $80,000 dividends + franking credit at 100%
at a price of $50 you will get 24,000 and potential $96,000 dividends + franking credit
at a price of $40 you will get 30,000 and potential $120,000 dividends + franking credit
at a price of $30 you will get 40,000 and potential $160,000 dividends + franking credit

I just wanted to illustrate that you must try and get the lowest buy price possible even if for a period the dividends are impaired.

Now you could do the same with VAS (or similar) which will spread your investment across the a range of shares. They have been giving a dividend of $3-3.50 over the last 5 years.

$60 you will get 20,000 shares and potential $70,000 dividends + franking credit at around 80%
at $50 you will get 24,000 and potential $84,000 dividends + franking credit at around 80%
at $40 you will get 30,000 and potential $105,000 dividends + franking credit at around 80%
at $30 you will get 40,000 and potential $140,000 dividends + franking credit at around 80%

The call is yours but I think I have illustrated that with your $1.2mil you can achieve much more the your wished for $75k pa

This is not advice.

 

Imagine if you had 1.2 million to spend with these prices? It would be very difficult to figure out what to buy and when. Could clean up in terms of an income stream though

 

Hi Andy,
Would the divided also get smashed if the share price dropped ie
CBA - $30 = divided reduced 1/3?
$4= $1.3

 

Absolutely. In the short term all dividends will be smashed and who knows to what levels.

Regardless, my view is that a good business will recover and possibly quite fast. It's simply a wait which I can afford.

Again only my opinion

 

Hi Handyandy,

Coincidently I have been loading up slowly on VDHG which has some VAS in it.. .. I have $200k there now in VDHG

I will look at VAS as well.

I was going to check out CBA tomorrow after the rate cut thats proposed.

Thank you for your post and pointing the $75k thing out to me.

Do you have any opinion on VDHG? Their dividend yield seems to be around 4.33%

VDHG




-Frank

 

Thanks mate

 

In another post I think you said you wanted to add a fund that didn’t have too much financials but now you’re considering investing directly in CBA?

Further you’re considering adding VAS which is quite well represented in VDHG not to mention that VAS is also heavily exposed to Financials?

 

Just trying to be helpful Frank Manno , but do you have a financial plan in place that you are following?

 

Ah Nodrog its been a while

Yes I don't mean to sound confusing, I am looking at different options thats all.

@Handyandy sparked some interest with his recent post about he dividends. I didn't consider this before because banks were too expensive and would not fit into my plan.

VAS is well represented in VDHG but VAS seems to have better dividends + franking.


-Frank

 

Yes I do, I have a financial plan to DCA into the market.

But my financial plan was implemented when the market was over 7000. Now that market sits well below that I am thinking that I could achieve my end goal sooner.

This may change my plan. I am looking into this.

If I bought 50% VAS and 50% dividend paying stocks I think I'm done.


-Frank

 

You have a plan, stick to it.

You keep going around in circles because people are promising you better results (i.e. getting more dividends), but nothing comes free without risk. Handyandy provided dividend figures that tell you nothing about the future.

You have a good plan - DCA every month into VDHG and you will be happier.

 

Many ETFs and company divs will be suspended pending cashflows being more predictable. Some have started already.
https://www.asx.com.au/asxpdf/20200319/pdf/44g647bcrq3xl6.pdf

Even big name ASX listings known for dividends will have changes. Flow through to ETFs will follow

 

I think one of your posts mentioned you were seeing a financial advisor.

I have a small amount in comparison, but wondering how to best take advantage of the downturn.

Did your financial planner give any indication on how you should dollar cost average? Over 6 months? Putting a set amount in with each drop?

 

He was suggesting to dollar cost average over a year and if we see a drop we would invest more.
But that was when the market was at an all time high back in december-january. His suggested back then would not apply now..

He recently suggested that 50% now would be ideal and I tend to agree. Nobody knows so don't take anything as 100% the thing to do. He never really said about how much to dollar cost average from this point on. I'm kind of doing my own thing in regards to this.

I am already in about 25% and when the market opens on Tuesday I will go in another 25% and then just play it by ear really. If the market stays flat I will invest about 3% per month of the remaining and just keep watching and possibly invest more. Its against all the rules but I'll probably try to time it which I don't recommend, it's just how I am I guess.

But I like @Ross36 's idea of this "put 50% in tomorrow and dollar cost average the other 50% in at a rate of 10% per year' The thread is on this page: LIC Performance Comparison ARG v AFI

I read somewhere that we are closer to the bottom than we are to the top as well so maybe take with a grain of salt, again nobody knows.

This video by Peter Switzer here is helpful. Watch the first 1min 30seconds and then from the 23min mark.

-Frank

 

Thanks. Interesting idea.

I have read that 70% of the time it is better off to invest in a lump sum rather than dollar cost average. I am wondering whether to just chuck it all in VAS and be done with it. Sure it could be a missed opportunity, but guaranteeing a healthy discount from the peak.