Income investing

[shri]

At least you avoid the dreaded 30% WHT with those - VOO is the only one that sticks out.

Can of worms opened ... The guy is in yieldmax single stock funds.

[RobRoy]

I'm happy to buy individual stocks in business that are established and well-understood and which have significant (5%+) dividend yields. Within reason I'm not too worried about the underlying share price because these are long term buy-and-holds and if I need some cash there will generally be one or two stocks at a good point in the price cycles.

Currently my holdings include: HSBC, HK Electric, HKT, China Shenhua, CNOOC, VTech, Imperial Brands, Rio Tinto.

Good list, I would also say this is a good approach if one can stomach some volatility. It's an especially good approach nowadays when the HK market sold of and consequently dividend yields have gone up. I would add to that REITs which has a bit different risk profile, more bond like where dividends are often in the upper range of what regular stocks give. They are also regulated to pay out 90%+ of their earnings, so the dividend is not as easily pulled, which does happen from time to time in single stocks.

[Crankshaft]

At least you avoid the dreaded 30% WHT with those - VOO is the only one that sticks out.

With a yield of barely over 1% the damage should be insignificant for VOO as well.

[Elefant&Castle]

With a yield of barely over 1% the damage should be insignificant for VOO as well.

Yes - but it's the principle of the thing - unbearable.

NVDA also has a dividend - tiny relative to their earnings.Which makes you think - are they ever going to pay a dividend. Over its lifetime, the value of a company is the sum the dividends they pay out. Capital gains are zero sum.

[PLamHK]

I would add to that REITs which has a bit different risk profile, more bond like where dividends are often in the upper range of what regular stocks give. They are also regulated to pay out 90%+ of their earnings, so the dividend is not as easily pulled, which does happen from time to time in single stocks.

This is a feature also of HK Electric and HKT which are both structured as Share Stapled Units and are required to distribute essentially all of the profits to SSU-holders. Since HK Electric's profit (actually ROI) is fixed through the so-called "Scheme of Control" this results in it's SSUs behaving rather like bonds with a reasonably high yield (currently 6%)..

[mmbiker]

Can of worms opened ... The guy is in yieldmax single stock funds.

Yes, I do have some YieldMax ETF and those are the one that really takes a hit with 30% WHT. Debuting to keep it or let it ride. just a small position.

VOO and NVDA does pay div but they are very very small so 30% WHT is non-significant.

[RobRoy]

This is a feature also of HK Electric and HKT which are both structured as Share Stapled Units and are required to distribute essentially all of the profits to SSU-holders. Since HK Electric's profit (actually ROI) is fixed through the so-called "Scheme of Control" this results in it's SSUs behaving rather like bonds with a reasonably high yield (currently 6%)..

Good point, these type of utility stocks should be even safer than REITs.

[Morrison]

This is a feature also of HK Electric and HKT which are both structured as Share Stapled Units and are required to distribute essentially all of the profits to SSU-holders. Since HK Electric's profit (actually ROI) is fixed through the so-called "Scheme of Control" this results in it's SSUs behaving rather like bonds with a reasonably high yield (currently 6%)..

What’s SSU, please ?

[Morrison]

Good point, these type of utility stocks should be even safer than REITs.

Not sure Google translate works, utility stocks are not bullet proof either.
Especially not when the gov. decides to go green

https://taz.de/Aktienkurs-Debakel/!5225749/

[traineeinvestor]

What’s SSU, please ?

Share Stapled Unit - it's two securities such as a share in a company + a unit in a trust which are "stapled" so they get traded as a single security. The rational is generally said to be to ensure stable distribution streams to investors. In some jurisdictions, there are also tax advantages.