You cite $O as an example, but as a REIT it has to have a certain payout ratio? Yes, it may be that growth stocks are performing better in the current phase. Even when viewed over 15 years. But what happens if things go the way they did between 00 and 13? It took the World Index 13 years to get back to that level. In other words, when you entered in '99, you only started to make gains in 2013 (based on a one-off investment), whereas, to stay with your example of Realty, you would have already achieved a 65% return through dividends. There are always different strategies and that's the way it should be. But to demonize the dividend strategy is nonsense. I myself had growth stocks in the savings phase for years. For me, even Apple is now a dividend stock. My personal yield there is around 8.5%pa. Should I sell them now? Nintendo is at around 12%, so should I get rid of it quickly? For a 20 year old, shares like Realty, Main, Vinci and what they are all called make little sense - I fully agree. But after the savings phase, these shares do make sense. If you can reduce your working hours, for example, and yes, the money is taken out of the company, but that's exactly what the companies want. What should Coca Cola do with around €8 billion more a year? Increase manager salaries?
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•@Hotte1909 You're confusing things. I have nothing against dividends as a de-investment strategy per se. But rather against the nonsense that dividends have anything to do with "profit" or are somehow better than pure partial sales. Or that the reinvestment yields more than if the company had paid no dividends at all. Whether a company pays dividends or not makes no difference if you reinvest the dividends. De-investing makes you more inflexible than selling yourself.
O performs worse than the Msci world
If you were to sell a share of Msci World every month, you would do better than a deinvest via reality dividends.
O performs worse than the Msci world
If you were to sell a share of Msci World every month, you would do better than a deinvest via reality dividends.
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@Madhatter5566 When de-investing, dividends are much better from a tax perspective than selling shares.
Keyword FiFo principle.
And your above-mentioned argument for fees when reinvesting dividends is now also null and void, which broker still charges fees for savings plans...
Keyword FiFo principle.
And your above-mentioned argument for fees when reinvesting dividends is now also null and void, which broker still charges fees for savings plans...
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•@Dividenden_Monteur You could also simply move the custody account. And since taxes are incurred by both the company and you, I doubt that they are better. In mathematical terms, partial sales are better when saving in order to utilize the tax-free amounts. If you're saving up, I'd push deposits to save tax. Then turn Fimo over.
Do you constantly adjust your savings plans to offset your incoming dividends? And taxes still come in. And you're wasting time in the market waiting for the dividends.
Do you constantly adjust your savings plans to offset your incoming dividends? And taxes still come in. And you're wasting time in the market waiting for the dividends.
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@Madhatter5566 You don't understand. What if there are years like 00-13? In other words, I buy a World share for €100 now, but next year I only get €10 and it takes 13 years until I get €100 again. Where am I better off with partial sales than with dividends? It seems you all haven't experienced any really bad years yet.
You only know one direction - upwards. A 20% crash and so what? Go through years where it goes down 65% and you'd be happy to have dividend stocks.
You only know one direction - upwards. A 20% crash and so what? Go through years where it goes down 65% and you'd be happy to have dividend stocks.
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•@Hotte1909 What happens if O crashes? Where does the extra money come from if O also crashes? O also lowers dividends if it is affected by the crash. The dividends are deducted from the share value at payout (and mean less payout in absolute terms even if the relative payout remains the same).
Please calculate where you are better or worse off with an equivalent company compared to O with no dividend. Just do it
Please calculate where you are better or worse off with an equivalent company compared to O with no dividend. Just do it
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@Madhatter5566 What should a securities account transfer change at FiFo?
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@Dividenden_Monteur Don't you know this? When you change securities accounts, the youngest ones are booked over first and become the "oldest". This avoids the tax problem. Fifo, so to speak, during the transfer leads to the reverse entry.
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@Madhatter5566 I can't imagine in the slightest that there is such a stupid tax loophole in Germany 🤣
@DerSteuerberater can you say something about it here
@DerSteuerberater can you say something about it here
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•@Dividenden_Monteur The FIFO principle also applies when changing securities accounts. That's how I know it. At least you've learned something new.
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@Madhatter5566 Is there any evidence of this?
You are only changing brokers, your shares remain in the same depositary.
You are only changing brokers, your shares remain in the same depositary.
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