Yeah.....high returns is high-er risk.

Do a search at seekingalpha. Then make your own DD.

Funds do not know everything. Plus they have their own risk constraints. All I know is I receive monthly or quarterly dividends from these counters. AND their earnings more than cover these dividends. Sometimes they issues special dividends, so the yields are even higher.

Oh ok. Thanks. Talking about Seeking Alpha, do you pay for the subscription? I just read free stuff there..quite fun to read but wonder if worthwhile to subscribe?

No. I do not pay for the subscriptions.
Just read to get ideas.

We need contributors in forum ! Looking forward to your research

Aiyo, I damn lazy. Normally I don't go into details like Ramjade gor. Might as well you just explain briefly..then everyone can learn also. Or we just follow prophetjul gor, buy 15% yield and deduct whatever you want lah...

BREAKING DOWN 'Franked Dividend'
Because dividends are paid out of company profits that have already been taxed, shareholders are responsible for a smaller portion of tax on those dividends. Since investors receive a credit for the amount of tax the business paid on a dividend, if the investor’s tax rate is below the company’s tax rate, the investor receives a refund of the difference from the Australian Tax Office (ATO).

For example, Sarah invests in a company that pays her a fully franked dividend of $800. Her dividend statement indicates a franking credit of $270. If the dividend were unfranked, Sarah would have owed taxes on the entire $1,070 ($800 + $270 = $1,070.) Therefore, when Sarah files her taxes, she declares $1,070 as part of her taxable income. Because her marginal tax rate is 20%, she would have paid $214 if the dividend were unfranked. Because the dividend is franked and the company paid $270 in taxes, Sarah receives the difference of $56.
Fully Franked Dividends
When a stock’s shares are fully franked, the company pays tax on the entire dividend. Investors receive 100% of the tax paid on the dividend as franking credits.
In contrast, shares that are not fully franked may result in tax payments for investors. Because of tax deductions businesses may claim, such as losses from preceding years, the company issuing the dividend might not pay the entire tax rate on its profits in a given year. When this happens, not enough tax is paid by the business for attaching a full tax credit to the dividends paid to shareholders. As a result, a tax credit is attached to some of the dividend, making that portion franked, and leaving the rest of the dividend untaxed, or unfranked. The dividend is then partly franked. The investor is responsible for paying the remaining tax balance.
Example of Franked Dividends
In April 2016, New York-based investment firm VanEck announced its launch of its security called the VanEck Vectors S&P/ASX Franked Dividend ETF. The security was the first exchange-traded fund (ETF) in Australia that included companies in the S&P/ASX 200 that paid out 100% franked dividends in the preceding two years and have sustainable dividend policies. The EFT is designed to track the S&P/ASX Franked Dividend Index that S&P Dow Jones Indices created with VanEck. The security was designed for increased flexibility, transparency and cost-effectiveness.




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Bro,... the above would be a good start as an objective,... I look at it this way,.. are you able to invest INSIDE Australia ? IF you are able to, then only you start talking about franking of divvy payouts,... otherwise, why bother ? Just compare what that is given out without the frankings and see if it is worth it against your existing investments,..

One more tip : when Aussie companies declare dividends, they always say whether it's a fully-franked dividend or dividend with frankings,... they will say fully-franked, 30% franked, etc,... it's very clear,...

- looking at the above, no need to do other work already, bro,... I think the fastest way to learn this topic is by doing it,... But I guessed everybody has his own ways to learn...

I might think my way is a short-cut, but another individual might not,...

Ya, like you say, only residents paying Oz taxes with low tax brackets benefit from fully franked dividends. An Aussie in the lowest tax bracket receiving dividend income might be paying little to no tax after all rebates. (I am just assuming) .However, we cannot compare like that lah. As long as withholding tax of 30% is not that punishing comparing to middle income group is good enough lah. I don't want to be too disadvantaged, that's all. Having that part covered, more importantly is to find the correct fish!

Don't know if our discussion is going in opposite directions,... but I'd like to say this : Whichever bracket you are in,... the way the dividend is counted is like it is part of your income. The franked part helps you to offset the amount of tax that you need to pay.

So,... whether you are earning high or low income, the franking helps you to offset your taxes. So,... nobody is benefitting more than another,.. but that's how I look at it,...

Anyway,.. I won't delve too deep into the above because it is all purely academic if you are NOT an Australian Resident. If you are one, then I will debate with you,... If you are an Australian Resident, we can debate on :-
1) what happens to your dividends earned.
2) what happens to your capital gains.

Compare the yields that you will earn if you invest into Msian stocks/REITs, vs SG stocks/REITs, vs AU stocks without the frankings / REITs - this was what I meant earlier by comparing. Then we select the one with the best yield, taking into account the risk vs return,...

well said bro. Agree ! Like prophetjul also said, USA tax is 30%, but he is happy with 8-12% net return. So why bother to compare how much tax the local vs foreigner pay...

That's why I thought bro aspartme is just trolling me. He is of financial background, already knew very well how the dividend system works. He is just trying to test me...

IIRC, we had a "discussion" on property prices last year, back and forth with something very simple which, for some unknown reason, he disagreed with me. Eventually cherroy transfer the thread to /k (don't know why moderators hates BBB DDD threads). He didn't resply me since...

yeah,bro,.. a bit of time-wasting here,... huh ??

A lazy person will never be a good investor. In fact a lazy person will never be good in anything

Don’t be lazy. Lazy is a wrong attitude which bring you failure in anything you do.

Finish off your research. Not that difficult lah....

Awaiting your contribution.

I did not mean to troll lah. Normally I am quite random and will just ask when I am not sure. I think u must have thought I have some beef with u because of the episode last year but no... not at all.. I dun have such trolling intention.. my question was genuine but it was also out of curiosity because I know the answer will not affect my returns much... it is just for knowledge .. I knew about franking dividends a bit but forgot about it until lately, when u throw the questions and I quickly refreshed my knowledge .. ha ha.... come to think about it... I also forgot what we were debating about but I remember I was right and I failed to convince you and then the thread was moved and I lazy to continue... I knew u are knowledgeable in many things but that was something I was quite sure.. maybe I am wrong...another Saturday afternoon rambling

I deem the knowledge inconsequential and so I choose to spend my time elsewhere ...I am not into specifics unless it is crucial..

Actually, if you look at how I reply you, I was guiding you towards the right mindset in investing.

You compare the tax payable between local vs foreigner, instead of the total net returns from investing in different countries.

Eg your investment decision is based on if Australian pay dividend tax 30%, you pay 30%, then can invest because it is “fair”

What if the DY in ASX is 5% nett, while SGX is 8% nett ? This should be the criteria of your investment decision instead of how much tax you pay above/below the locals

This is similar with what we “discuss” last time IIRC. You insist you were right, that is your choice. I am not pointing a gun at you to accept the concept

If you always “half-cook” your knowledge, and giving excuses that it is “inconsequential”, you will never make a good investment decision.

Specifics and being detailed is very important in passive investment. Even a tiny bit of difference, like 2% DY, could have caused you thousands of dollars

Another of the mindset in investment decision. Never underestimate the difference in specific vs general

Again, not pointing a gun at you to accept the mindset. If you are contented with being “cincai”, continue with it

Bro, this is gonna start the "quarrel" again but I am not about to go into it because my facts and details are not as good...and I know I cannot win an argument with you because previously I remember I gave a very solid explanation but you totally cannot accept my points and hence this is going to be the same.

Guiding me is a strong word because I never need any guidance all these years. I do not know many things and I am not shy to ask but I always form my own analysis and opinions. I dare not say I can guide you also.

Of course, if u are 100% sure that the 8% and 5% is a sure thing and comes with the same risk, then it is a no brainier to choose 8%. How do you compare stocks with no dividends then...in the long run, u must understand the concept that the market is not so inefficient as to allow you to go unpunished for investing on disadvantaged terms .... u can say that it is the end result that counts ...

Ya, I am quite cincai when I think further analysis will not help me... I do not need the specifics when the specifics will not change the big picture. Your example of dividend : you can calculate the difference if the dividend yield is 5% vs 5.5% but I am more concerned with if the company is likely to even be profitable to pay any dividends. Bank interest - by all means be very specific. See: 2 different scenarios - one u neee to be specific , the other, being specific does not necessarily help if you get the stock ( big picture) wrong.

Even Charlie Munger says Warren Buffett seldom need a calculator to make a decision on investment. He might be exaggerating a bit lah. I am not sure anybody is qualified to argue with mr warren but u get my point.

Why not just finish up your own analysis and opinions, instead of explaining yourself what you did last time ?

What is the net dividend after tax a foreigner pay for ASX ?

Question is so simple right ?