Dump it Here

[Skate]

I thought that's as clear as a nose is on a face.

Debts will always be there until paid, whereas income can vary depending on many factors, be it a company or an individual's

@eskys, I understand your point now
Debts are indeed real and persistent, whereas income can be variable and unpredictable. It's important to recognise the difference between open and closed profits, as you mentioned. Open profits are vulnerable to market fluctuations and can vanish quickly, while closed profits are secure and belong to you. Embracing this mindset can help you navigate volatility and make informed decisions about risk and reward.

It pays to remember
"Open profits belong to the market, closed profits belong to you."

Skate.

 

[eskys]

Do yourself a favour
Set a logbook of your shares at their Highest
That was YOUR MONEY THEN
What you have lost is LOST!

Do I still have to do that? I'm a pet pig!

 

[Skate]

Well done ! My apologies
I did not know you started with only $4,000,000.00

@Captain_Chaza, my initial investment was $2,212,120.47

ANZ.AX	ASX	ANZ Group Holdings Limited	Investments	Share	15,572​	$24.55​	$382,292.60​
BHP.AX	ASX	BHP Group Limited Ordinary	Investments	Share	17,515​	$46.62​	$816,549.30​
CBA.AX	ASX	Commonwealth Bank	Investments	Share	3,698​	$106.67​	$394,465.66​
FMG.AX	ASX	Fortescue Ltd Ordinary	Investments	Share	15,464​	$25.67​	$396,960.88​
MFG.AX	ASX	Magellan Financial Group	Investments	Share	14,189​	$8.42​	$119,471.38​
WDS.AX	ASX	Woodside Energy Group Ltd	Investments	Share	3,396​	$30.147423​	$102,380.65​

Skate.

 

[Captain_Chaza]

Do I still have to do that? I'm a pet pig!

Pigs are the World's Most Eaten Meat
That's why my man PM Keating went into Pig Farming

There are no pets when it comes to Bacon

 

[Skate]

Do yourself a favour
Set a logbook of your shares at their Highest
That was YOUR MONEY THEN
What you have lost is LOST!

@Captain_Chaza, I understand that you're trying to make a point about the importance of keeping track of one's investments. I understand that it can be tough to see the value of your investments go down, but it's important to remember that it's not uncommon for the stock market to fluctuate. I already keep track of my investments and will post about the ongoing performance at relevant intervals.

Skate.

 

[eskys]

Pigs are the World's Most Eaten Meat
That's why my man PM Keating went into Pig Farming

There are no pets when it comes to Bacon
View attachment 168240

See, you can only see in one direction!

 

[farmerge]

See, you can only see in one direction!

Ahoy land ahead looking from the crow's nes with only one eye open.

 

[eskys]

Time for dinner, and I'm gonna eat a pig...happy chatting, folks. Good luck for tomorrow.

 

[farmerge]

Time for dinner, and I'm gonna eat a pig...happy chatting, folks. Good luck for tomorrow.

Arvo tea time fast approaching here

 

[Captain_Chaza]

I have no problem with getting any Dividends on the way as when at sea we always need to buy Ropes Hooks, lines Sinkers, Salted Meats , Herrings and Cabbage

 

[eskys]

I have no problem with getting any Dividends on the way as when at sea we always need to buy Ropes Hooks, lines Sinkers, Salted Meats , Herrings and Cabbage.

Cabbage will give you plenty of wind to keep sailing. Enough from me, till tomorrow, goodnight, everyone.

 

[Skate]

I have no problem with getting any Dividends on the way as when at sea we always need to buy Ropes Hooks, lines Sinkers, Salted Meats , Herrings and Cabbage

With this portfolio and around the 5% dividends plus franking you should be on over $150,000 (tax free) per year without depreciating the value of your investment.

To retire on I think this is more than most need.

Generating a sustainable income
My current thinking when it comes to my investment strategy for the 2024/2025 financial year. I plan to gradually increase my exposure by lifting the number of shares in WDS over the year. I'm aiming to withdraw $120,000 as a sustainable wage, which will allow me to maintain my current lifestyle.

I'm keenly aware that there are many ways to generate wealth, however, investing in the market remains a key component of my overall financial strategy, and I'm excited to see how my shift to investing will perform in the coming year.

Skate.

 

[ducati916]

A Sustainable Income Stream through Dividend Investing
Investing in the stock market can provide a sustainable income stream through dividends and franking credits. In the chart below I explore the potential returns from a hypothetical investment in six well-known Australian companies: ANZ, BHP, CBA, FMG, MFG and WDS. The dividends and franking credits paid out by these companies between 2022 and 2023, demonstrate how a long-term investment strategy can provide a reliable income stream.

Methods
I collected the dividend and franking credit data for the six companies mentioned above from publicly available sources (CommSec). The data covers four dividend payments for each company between 2022 and 2023. I calculated the total dividend and franking credit payments for each company and then combined them to obtain a total payment figure.

Results
The results are presented in the table below, showing the total dividend and franking credit payments for each company and the total for all six companies.

# Dividends and Franking Credits for 2023 were = $177,114.27 (Tax Free in my case)
# Dividends and Franking Credits for 2022 were = $227,891.44 (Tax Free in my case)

On face value
The amounts listed above will vary - but overall, the tax-free returns aren't too shabby at all. A hypothetical investment in these six companies could have provided a significant income stream through dividends and franking credits. The total dividend and franking credit payments for 2023 amounted to $177,114.27, while the total for 2022 was $227,891.44. These figures illustrate the potential for a sustainable income stream over two years.

ANZ	Shares	Dividend	Payment	Franking	TOTAL
22/12/2023​	15,572​	$0.94​	$14,637.68​	$2,854.35​	$17,492.03​
3/07/2023​	15,572​	$0.81​	$12,613.32​	$3,784.00​	$16,397.32​
15/12/2022​	15,572​	$0.74​	$11,523.28​	$3,456.98​	$14,980.26​
1/07/2022​	15,572​	$0.72​	$11,211.84​	$3,363.55​	$14,575.39​
BHP	Shares	Dividend	Payment	Franking	TOTAL
28/09/2023​	17,515​	$1.25​	$21,911.27​	$4,272.70​	$26,183.96​
30/03/2023​	17,515​	$1.36​	$23,890.46​	$4,658.64​	$28,549.10​
22/09/2022​	17,515​	$2.55​	$44,698.28​	$8,716.16​	$53,414.44​
28/03/2022​	17,515​	$2.08​	$36,448.72​	$7,107.50​	$43,556.21​
CBA	Shares	Dividend	Payment	Franking	TOTAL
28/09/2023​	3,698​	$2.40​	$8,875.20​	$1,730.66​	$10,605.86​
30/03/2023​	3,698​	$2.10​	$7,765.80​	$1,514.33​	$9,280.13​
29/09/2022​	3,698​	$2.10​	$7,765.80​	$1,514.33​	$9,280.13​
30/03/2022​	3,698​	$1.75​	$6,471.50​	$1,261.94​	$7,733.44​
FMG	Shares	Dividend	Payment	Franking	TOTAL
28/09/2023​	15,464​	$1.00​	$15,464.00​	$3,015.48​	$18,479.48​
29/03/2023​	15,464​	$0.75​	$11,598.00​	$2,261.61​	$13,859.61​
29/09/2022​	15,464​	$1.21​	$18,711.44​	$3,648.73​	$22,360.17​
30/03/2022​	15,464​	$0.86​	$13,299.04​	$2,593.31​	$15,892.35​
MFG	Shares	Dividend	Payment	Franking	TOTAL
7/09/2023​	14,189​	$0.698​	$9,903.92​	$3,607.86​	$13,511.78​
8/03/2023​	14,189​	$0.47​	$6,654.64​	$2,424.19​	$9,078.83​
6/09/2022​	14,189​	$0.69​	$9,776.22​	$3,351.85​	$13,128.07​
8/03/2022​	14,189​	$1.10​	$15,622.09​	$5,021.39​	$20,643.48​
WDS	Shares	Dividend	Payment	Franking	TOTAL
28/09/2023​	3,369​	$1.24​	$4,187.67​	$816.60​	$5,004.26​
5/04/2023​	3,369​	$2.15​	$7,256.83​	$1,415.08​	$8,671.91​
6/10/2022​	3,369​	$1.60​	$5,390.40​	$1,051.13​	$6,441.53​
23/03/2022​	3,369​	$1.46​	$4,925.48​	$960.47​	$5,885.95​
Dividends + Franking
2023​	$177,114.27​
2022​	$227,891.44​

Conclusion
This case study demonstrates the potential for a sustainable income stream through dividend and franking credits investing in well-established Australian companies. By investing in a diversified portfolio of stocks, investors can potentially earn a reliable income stream that can help them meet their financial goals. Also, there will be Capital Gains and losses along the way.

Skate.

What it demonstrates is that from 2022 to 2023 the dividends decreased by $50,777.17 or 22%.

Why was that?

*
If the dividends are falling, it is important to know why. Obviously if (for example) in resource companies that capital is being redirected to CAPEX, that is better than revenue/cash flow issues.

jog on
duc

 

[divs4ever]

3. Why do you not believe passive is flawed? What are the principles? How do you effectively apply them?

it is at the whim of the really big players , forcing company/management changes , it seems some fund managers lend out clients shares ( not just ETFs ) , passive implies 'hands off and just wait ' i would rather meddle and improve as the opportunities arrive

also passive looks good because of survivor bias ( i doubt you can pick 100% of the portfolio that is still around in ten years time )

 

[Captain_Chaza]

Please
I am fed up with this All This Fundamental Non-Sense

I am Gone!

 

[divs4ever]

@eskys, riddles can obscure your point, making it hard for others to understand. Instead, consider explaining your thoughts clearly and directly.

Skate.

i think @eskys is trying to say is future income is not real until it arrives at your bank account ( but i could be wrong ) , i discovered that inconvenience during the pandemic , where i thought $xxxx would arrive in the savings account every three months ( that was a reality check , indeed )

and forecast divs , are a concept until payment is received

 

[Skate]

What it demonstrates is that from 2022 to 2023 the dividends decreased by $50,777.17 or 22%.

Why was that?

@ducati916, I understand your concerns about the variation in dividends and franking credits from my investments. Let me provide some context and insights into the factors that contributed to the differences.

Firstly, ANZ's dividend decrease was primarily due to the funds set aside for the Suncorp merger and the new accounting method for calculating franking credits, which now includes a percentage of their profit from overseas operations.

Secondly, BHP's dividend decrease was a result of the spin-off of a part of their holding company to WDS, along with a special dividend that was paid, which accounted for the variation.

The rest of the dividends fluctuated due to natural market and economic trends, as well as industry-specific factors. It's important to remember that dividends can fluctuate over time and are influenced by various factors.

In summary, while there have been some variations in dividends and franking credits, my investments are still on track to provide a sustainable income source. I'm confident in my investment strategy and am always open to exploring new opportunities.

If you have a better group of 6 ASX companies to invest in, I'm eager to hear your suggestions. It's easy to criticise, but much more productive to offer constructive ideas and work towards building something valuable.

Skate.

 

[Skate]

Please
I am fed up with this All This Fundamental Non-Sense

I am Gone!

@Captain_Chaza, I understand your frustration, but let's keep the discussion civil and focused on the topic at hand. I'm not trying to defend my investment choices or seek validation, but rather to have a constructive conversation about alternative income-producing investment strategies.

I appreciate @ducati916's input and the insights he's shared. It's important to consider multiple perspectives. Keeping the discussion productive and respectful, even if we disagree is how we all learn and help each other.

Skate.

 

[Skate]

i think @eskys is trying to say is future income is not real until it arrives at your bank account ( but i could be wrong )

@divs4ever, I must admit that I had difficulty understanding @eskys' previous message. While it was clear to him, it came across as a riddle that left me and possibly others struggling to decipher its meaning. I responded to him, hoping to encourage him to express his thoughts more clearly in the future. I believe that @eskys has valuable insights to share with our community, and I'm confident that with a bit more clarity, his contributions will be even more meaningful and beneficial to all of us.

Skate.

 

[divs4ever]

@ducati916, I understand your concerns about the variation in dividends and franking credits from my investments. Let me provide some context and insights into the factors that contributed to the differences.

Firstly, ANZ's dividend decrease was primarily due to the funds set aside for the Suncorp merger and the new accounting method for calculating franking credits, which now includes a percentage of their profit from overseas operations.

Secondly, BHP's dividend decrease was a result of the spin-off of a part of their holding company to WDS, along with a special dividend that was paid, which accounted for the variation.

The rest of the dividends fluctuated due to natural market and economic trends, as well as industry-specific factors. It's important to remember that dividends can fluctuate over time and are influenced by various factors.

In summary, while there have been some variations in dividends and franking credits, my investments are still on track to provide a sustainable income source. I'm confident in my investment strategy and am always open to exploring new opportunities.

If you have a better group of 6 ASX companies to invest in, I'm eager to hear your suggestions. It's easy to criticise, but much more productive to offer constructive ideas and work towards building something valuable.

Skate.

different , yes , but will they be better choices in the future ??

i understand the logic behind those choices , but i would make some different ones

although i hold BHP it would not be a choice ( to buy now ) it is busy shrinking the asset base , that may bring cost efficiencies , but it may not

i would have picked WES ( even at current over-valuations ) as it is still trying to grow/react to the current economy ) ( i hold WES )

GRR instead of FMG it has amazing discipline but is eventually liable to be a take-over target ( i hold GRR )
WHC instead of WDS , the share price is still a little high , and 'coal is dead ' but the corpse will have a perfect set of gold teeth and an engraved gold coffin ( i hold both shares )
ALQ the unloved offspring of Campbell Brothers probably a bit over-valued , but trying to adjust for the future but sticking to the core skill-set but adjusting to the dominant demand ( i hold ALQ )

IGO , if you must have 'clean energy exposure ' but DRR should be the lower risk play ( but maybe franking credits will wane) ( i hold both shares

cheers