Paying taxes is a fact of life. We never worry about paying capital gains tax shares because it means we made a profit on the investment. We have prepared a simple primer on most common questions on this issue. These are our thoughts only and is not a substitute for professional advice. Depending on individual […]
Best Australian Blue Chip Shares of 2021
For most investors Australian blue chip shares should make up a core portion of the investment portfolio. The relative weighting in the portfolio compared to growth, dividend stocks and even other asset classes like bonds and real estate depends on the risk tolerance and investment horizon. What are Blue Chips Shares? Blue chips in the investment landscape […]
Everything You Need to Know About Dividends – Dividend FAQ
This page is created to be a comprehensive definition of key terms used in Dividend Investing. It is a one stop FAQ on all main dividend terms, calculations, and how they operate. Table of Contents Measuring dividends Everything about dividend payouts Different dividend dates All types of dividends How franking credits work What is a Dividend? […]
Earning Per Share vs Cashflow
Earning per share (EPS) is a basic requirement in calculating the price to earnings ratio, the go to metric for investors in taking a simple valuation of a company’s equity. As the owner of the stock which is a portion of the business. The EPS number shows essentially how much of the business income shareholders receives […]
All you need to know about dividend yield
Hybrid Investments
What are Hybrid Securities Hybrid security is a investment security with characteristics of debt and equity. In the company with a simple capital structure, hybrid capital sit between debt and equity where equity holders are at risk of first loss followed by hybrids then debt holders. Due to its position in the capital structure before debt […]
Share Buyback vs Dividend
Share buyback is when the company notify the current shareholders that they will be making an offer for their shares. There are 2 primary ways to execute a buyback program, on market and off market. On market buyback is when the company directly engages with the market by buying its own shares on the market. […]
Return on Investment
Return on investment (ROI) along with risk are two critical methods in evaluating investment performance. The holy grail of investing is to achieve high return on a low risk investment. In our investment analysis, we try to find companies which can provide attractive returns given the risks of the business and time horizon. Return on investment […]
How Carry Trades Work – Positive and Negative Carry
FX Carry Trade Traditionally the idea of carry trade started in foreign exchange trading. In currency trading you always sell a currency to buy another currency. For example if you buy Australian dollar You buy AUD and; sell it against another currency such as the USD, Yen or Euro to convert it from. The net […]
All you need to know about Margin Lending
What is Margin Lending? Margin lending is the use of a combination of equity and debt in purchasing investments. Similar to a mortgage, typical margin loans allow investors to only put down 25% of total investment value while borrow the rest from lender. Investor brokers like E trade, owned by ANZ typically provide margin lending […]
FV Calculator
If you want to calculate the future value a certain amount of cash today. The calculator below can find the value of your investment is in the future based on a certain rate of return. It can also be used to find the value of an annuity principal (i.e Challenger Annuity) with effects of compounding included. […]
Dividend Withholding Tax
Dividend withholding tax occurs when a company distribute dividends to shareholders that are not based in Australia. A set percentage amount of the dividend is withheld in Australia on behalf of the investor. This applies to investors on individual, company or trust level. The withholding tax applies to the gross amount of the unfranked dividend. […]
Compounding Interest Calculator
Compound interest is one of the most powerful tailwind a long term investor can have. Compounding interest calculator shows the investment return based a set rate compounding at either annual, monthly, weekly and daily frequency. You can change areas that are light green. End result is shown in the light blue area. Example above shows the […]
What is Shareholder Yield?
Returns on investment is made up of the dividend income paid out by the company which can be represented by the dividend yield and the capital appreciation over time. But dividends are not the only way companies can return capital to investors. Recently the trend has been companies using share buybacks as a way for […]
Cum Dividend
Financial Analysis Ratios
Financial analysis ratios allows investors a quick and effective way to measure company performance either against previous periods or against competitors. There are a number of financial analysis ratios and here are some highlights. Investors can also use the ratios below to evaluate the overall market (as well as index funds) Price to Earnings […]
What is Dividend?
What does Equity mean?
Equity can mean different things depending on the context of its use. Even in the investment space, the definition of equity has different meanings depending on the perspective of the user. What is Equity? An asset must be financed by a combination of equity and debt. Debt is straightforward as the amount borrowed with obligation […]