1Sem.·

New purchase: Colgate-Palmolive 🪥📈

I have further expanded my position in Colgate.

Why Colgate?

✅ Globally established brands

✅ Reliable dividend policy

✅ Defensive industry with constant demand

✅ Solid foundation for long-term investors

I follow Colgate in the long term as a conservative portfolio component with a steady cash flow - a classic buy & hold stock.

What do you think of Colgate as an investment in terms of valuation and prospects?

01.10

Colgate

Acheté x49,27 à 67,37 €

3 319,18 €

28 Commentaires

jkb92@jkb92

1Sem.

In my opinion, the willingness to pay a price premium for brands without this being accompanied by higher quality is slowly but surely declining.

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Jari Stark@MainTyp

1Sem.

@jkb92 Do you have a source for this?

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jkb92@jkb92

1Sem.

@MainTyp is more of a general observation. I once read something about discounters that went in that direction.

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regulator@regulator

1Sem.

When the crash comes, consumer goods will become a luxury and the expensive ones will win - because people will no longer buy lvmh but expensive toothpaste or lipstick. Something supposedly expensive in an economically weak phase.

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jkb92@jkb92

1Sem.

@regulat0r not plausible for me

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regulator@regulator

1Sem.

@jkb92 then look to the past - lipstick became a luxury item in 2008. That's why Michael Burry is investing heavily in Ester Lauder.

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jkb92@jkb92

1Sem.

@regulat0r maybe lipstick but not toothpaste

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Gomerdoc@Gomerdoc

@jkb92 no. Even the cheap toothpaste comes from $CL. Colgate's global market penetration is insane, 63% of all households on the planet use Colgate products every day.
That's why it's an absolute basic investment, not sexy, not crypto, and not growing at 1000% per year. But it is, and has been, absolutely profitable in the long term.

The same applies to $PG.

The current market situation is a top buying opportunity.

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Global I.@gloinvest

1Sem.

The dividend from Colgate is taxed at 26.36%. The same dividend in a Divi Etf is taxed at 18.46%. Why do you voluntarily pay more tax with less diversification and higher volatility?

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DTA@trade_commander_2498

1Sem.

@gloinvest interesting. Can you explain this in more detail?

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Fabi@fabsch

1Sem.

@gloinvest I believe that a mixture of both is a good way to go.

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Global I.@gloinvest

1Sem.

@trade_commander_2498 Partial exemption for dividend ETFs: How to save taxes
The partial exemption is an important tax advantage for investors in Germany who invest in equity ETFs, including dividend ETFs. It ensures that a certain portion of the income from these funds remains tax-free. This is intended to compensate for double taxation at company and investor level.
The most important facts in brief:
- What is the partial exemption? A legally defined percentage of your income from a dividend ETF that is exempt from tax.
- How high is it? For private investors in equity ETFs (funds with an equity ratio of at least 51%), the partial exemption is 30%.
- What does it apply to? It applies both to distributed dividends and to gains from the sale of ETF shares.
How does the partial exemption work in practice?
If you invest in a dividend ETF that distributes its income, you will receive regular dividend payments. Normally, this income is subject to flat-rate withholding tax (25%) plus solidarity surcharge and, where applicable, church tax. However, the partial exemption means that only 70% of these dividends are taxed.
Example calculation for a dividend distribution:
Assume you receive a dividend distribution of € 100 from your ETF.

Result: The partial exemption saves you € 7.92 in taxes in this example.
Partial exemption for accumulating ETFs and capital gains
The regulation does not only apply to distributing ETFs.
- Accumulating ETFs: For ETFs that reinvest their dividends directly (accumulate), the partial exemption is applied to the so-called advance lump sum. This lump sum is a notional income that is taxed annually in order to avoid tax deferral. Here too, 30% of the advance lump sum is tax-exempt.
- Gains on sale: If you sell your shares in the dividend ETF at a profit, 30% of this gain is also exempt from tax. Only the remaining 70% of the gain is subject to withholding tax.
Why does the partial exemption exist?
The partial exemption was introduced in 2018 as part of the investment tax reform. The basic idea is to offset the tax burden that already arises at company level due to corporation tax at investor level on a flat-rate basis. As the companies whose shares are held in the ETF have already paid tax on their profits before they distribute dividends, the investor should not have to pay tax on the full amount again.
What do you have to do as an investor?
As a rule, nothing. If you hold your securities account with a German bank or broker, the partial exemption is automatically taken into account when your income is calculated. The bank pays the correct (i.e. reduced) tax burden directly to the tax office. You will see the deduction in your tax statement. Your saver's allowance (€1,000 for single people, €2,000 for married couples) is also automatically taken into account and applied to the already reduced, taxable income.

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Global I.@gloinvest

1Sem.

@fabsch warum?

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Fabi@fabsch

1Sem.

@gloinvest Taxes are of course an issue, but other factors also play a role for me. I deliberately opt for a combination of dividend ETFs and individual shares. With individual shares, I have more control over weighting, distribution dates and I can select quality companies. But this topic has already been discussed up and down the community umpteen times. 😅
How do you see this in terms of long-term strategy, share price performance and dividend growth of individual companies vs. dividend ETFs?

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Global I.@gloinvest

1Sem.

@fabsch take a look at my portfolio and you will see how I see it in relation to dividends.

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Don C.@PoorDad

1Sem.

@fabsch I agree. Stick to your strategy. You won't know who is right for over 30 years. I am also pursuing a dividend strategy with individual shares.

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Jari Stark@MainTyp

1Sem.

@gloinvest Thanks for the info, I actually never noticed that before and read about it elsewhere. Probably because I've only read books by Americans :)

The calculation: With equity ETFs (min: 51%) 30% of the income is tax-free, i.e. only 70% is taxed.
This reduces the effective tax burden to approx. 18.375% (70% × 26.375%).

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Global I.@gloinvest

1Sem.

@MainTyp Exactly. I can't understand how you can voluntarily give away 7.5% less tax. If you extrapolate this to 10 years of compound interest, you have an irrecoverable disadvantage with higher volatility and low diversification if you are already aiming for dividends.

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KevinE@KevinE

@gloinvest This statement is complete nonsense. The partial exemption has a good reason and is not a trick to save taxes.

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Patrick Schäfer@Hotte1909

1Sem.

I sold at 89 at the time. But now it's definitely interesting again. Similar to $PEP and $PG

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Fabi@fabsch

1Sem.

@Hotte1909 Already had Colgate in my portfolio and sold near ATH. I wanted to get my foot back in the door now given the valuation. Additional purchases are planned at the appropriate time. $PG I am also about to top up.

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