Hi all
I am a new member to this forum, but have been watching from the unregistered list for quite some time, and have found it to be a great source of information so far.
As the title suggests i am only a beginner in the trading world and have yet to place my first trade, so still have a lot to learn, and a few questions about stuff that i cant seem to make sence of.
Firstly i suppose i will explain my plan, after recently moving to Australia from New Zealand earlier this year i applied for my tax return and got quite a hefty pay out of around 4k which i am ready to throw at the market, at this stage i plan to buy into an etf because i think it could be something stable, diverse and providing i pick the right one will net me with some returns in the long term (i plan to leave the money in this etf for 1-2 years).
After looking at different lists of etfs ones that have caught my attention are:
VAS
IOZ
STW
My main question is, why would anybody go for VAS, with a dividend yield of 4.35% and a franking dividend of 7.83%, when they could go for SWT which has a dividend yield of 4.11% but a franking dividend of 61.49%?
The only thing that makes sense to me is the fact that if you had them in a dividend reinvestment plan the franking dividends would be disregarded as they would not be listed as a taxable income? Also when purchasing the shares where can i choose to to have the dividends reinvested? I have signed up with ANZ e-trade as i already had a bank account with them and they made the whole process very easy to set up for a beginner.
Following this initial trade, i can save roughly 1100 a fortnight until it reaches 4-5k which then i will place another trade, in something elce that i have studied, quite possibly another etf as they seem like quite a safe option.
I realize this is a lot to take in and no hard advice is able to be given on these forums, but at this stage im really keen to get my foot in the door and start trading!!
Any help would be appreciated and please.. if im way off the mark dont hesitate to let me know
I am a new member to this forum, but have been watching from the unregistered list for quite some time, and have found it to be a great source of information so far.
As the title suggests i am only a beginner in the trading world and have yet to place my first trade, so still have a lot to learn, and a few questions about stuff that i cant seem to make sence of.
Firstly i suppose i will explain my plan, after recently moving to Australia from New Zealand earlier this year i applied for my tax return and got quite a hefty pay out of around 4k which i am ready to throw at the market, at this stage i plan to buy into an etf because i think it could be something stable, diverse and providing i pick the right one will net me with some returns in the long term (i plan to leave the money in this etf for 1-2 years).
After looking at different lists of etfs ones that have caught my attention are:
VAS
IOZ
STW
My main question is, why would anybody go for VAS, with a dividend yield of 4.35% and a franking dividend of 7.83%, when they could go for SWT which has a dividend yield of 4.11% but a franking dividend of 61.49%?
The only thing that makes sense to me is the fact that if you had them in a dividend reinvestment plan the franking dividends would be disregarded as they would not be listed as a taxable income? Also when purchasing the shares where can i choose to to have the dividends reinvested? I have signed up with ANZ e-trade as i already had a bank account with them and they made the whole process very easy to set up for a beginner.
Following this initial trade, i can save roughly 1100 a fortnight until it reaches 4-5k which then i will place another trade, in something elce that i have studied, quite possibly another etf as they seem like quite a safe option.
I realize this is a lot to take in and no hard advice is able to be given on these forums, but at this stage im really keen to get my foot in the door and start trading!!
Any help would be appreciated and please.. if im way off the mark dont hesitate to let me know
