1Wk·

Small restructuring...

...long thought about exchanging my monthly payer, but the prime rate is not expected to fall for the time being, so it could well fall further, but overall still well in the plus and therefore I will now switch to the same or better divi class with a clear conscience and take 30% tax exemption + withholding tax exemption with me.

02.05

Realty Income

Sold x50 at €50.30

€2,515.00

0.20%

24 Comments

BockaufDividenden@BockaufDividenden

1Wk

What do you mean by switching to a better divi class because of the 30% tax exemption? --> So into a divi-ETF?

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S.A.U.@SAUgut77

1Wk

@BockaufDividenden you can see quite well what I mean in the completed restructuring 😉

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BockaufDividenden@BockaufDividenden

1Wk

@SAUgut77 I've seen your other posts, I've lost track of them. But do you think these ETFs will continuously increase the dividend?....If you look at Realty Income and see how they have steadily increased the dividend, I don't see why I should take these ETFs.

You can take a case study, take €10,000 each in Realty or the ETF at the current price and then see what dividends are already coming in. So in relation to the forecast increase in divi

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S.A.U.@SAUgut77

@BockaufDividenden so the better alternative for me at the moment. The $JEGP is currently paying out a good 6.8% (6-8% targeted according to the prospectus) monthly dividend, which is also 30% tax-free, and there is no withholding tax, so together that makes quite a difference.

$O The dividend is currently around 5.8% and withholding tax is deducted from this and is taxed at 100%.

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BockaufDividenden@BockaufDividenden

@SAUgut77 That's really true about the withholding tax and 30% tax exemption....but I'm still undecided whether I should sell my Realty Income for it :( I have 10k sitting in it :(

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S.A.U.@SAUgut77

@BockaufDividenden ahhh, now I understand your previous example 😉

But what can I tell you, in the end you have to decide for yourself. It also depends on your strategy, equity and your portfolio or whether and how much price potential you see, etc.

With $VICI, I still have a REIT in my portfolio with further potential in my opinion and I will continue to hold it.

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BockaufDividenden@BockaufDividenden

@SAUgut77 Ahh great :)

Yes exactly, I have this ETF in mind, but in fact I am probably younger than you and would then rather look at growth potential, i.e. price + divi for stocks. At the moment I have Divi ETFs and REITs + BDCs which are supplemented with normal shares

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Jens@Tertel

@SAUgut77 In my opinion, the withholding tax on individual shares is offset against the final withholding tax in Germany. The partial exemption for ETFs exists because the fund company has already paid the withholding tax and offsetting does not take place. However, this does not necessarily result in a (tax) advantage

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S.A.U.@SAUgut77

@BockaufDividenden you see, it was quite simple 👍🏻

But I didn't necessarily take this ETF because of my age, as I still have a good 20 years to go until I retire.

I was much more interested in the withholding tax, 30% tax exemption and good dividends. (FSA is fully utilized and not that much tax is paid on the additional ~€500 in dividends)

The aim is to generate regular cash in order to invest it in old and new projects. So in addition to the regular savings rate, so to speak, the snowball gets going faster.

That said, I don't see the ETF as a price rocket, but there is still some room for improvement.

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S.A.U.@SAUgut77

@Tertel I agree with you about the individual shares, but after deducting ~ 11% you still have to pay full tax.

With the ETF you have 30% tax-free and your statement regarding withholding tax is not quite correct, because Ireland has the oldest tax treaty with the USA that still exists, which means they get their withholding tax almost completely refunded, why do you think so many ETFs are launched in Ireland 😉

And so that makes a lot of difference...

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Jens@Tertel

@SAUgut77 hmm, ETFs domiciled in Ireland pay 15% withholding tax on US dividends

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