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Old 21.12.2014, 15:06
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Swiss high dividend stocks - your favorites?

I'm knee deep into Zurich Financial on the SMI index. I love high div yield, low PE stocks and would like to buy more Swiss ones. Any more you can recommend? Incl also madcaps?
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Old 21.12.2014, 18:07
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Re: Swiss high dividend stocks - your favorites?

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I'm knee deep into Zurich Financial on the SMI index. I love high div yield, low PE stocks and would like to buy more Swiss ones. Any more you can recommend? Incl also madcaps?
Why would I want high dividends which are taxable, much prefer zero yield with higher tax free capital gains.

BTW 65% of the SMI was just 3 stocks last time I looked.
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Old 21.12.2014, 18:25
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Re: Swiss high dividend stocks - your favorites?

Pah!
Invest in Asia or the pink market.

It puts a spring in your step.
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Old 21.12.2014, 20:09
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Re: Swiss high dividend stocks - your favorites?

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Why would I want high dividends which are taxable, much prefer zero yield with higher tax free capital gains.

BTW 65% of the SMI was just 3 stocks last time I looked.

Mmmm... I think quite a few swiss names distribute a Return On Capital (ROC), instead of a taxable dividend. There is no withholding tax on ROC distributions. And I'm guessing from the name, it will be taxed as a capital gain, rather than income.

Nestle, Novartis and Roche all pay around a 5% yield, taxable dividend. There is a 35% withholding tax. As a swiss resident, you can reclaim all of the withholding tax if you fill in some forms. But you would still need to pay tax on the income.

I agree with fatmanfilms: better to go with a non-dividend paying firm and just sell 5% of your shares each year and pay 0% tax.
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Old 21.12.2014, 20:56
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Re: Swiss high dividend stocks - your favorites?

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MmAs a swiss resident, you can reclaim all of the withholding tax if you fill in some forms. But you would still need to pay tax on the income..
Interesting that the tax on dividend can be reclaimed. If I may ask in this thread, how is this done? Is the reason that you cannot be taxed twice over the same income (dividend tax and income tax)?
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Old 21.12.2014, 21:36
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Re: Swiss high dividend stocks - your favorites?

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Interesting that the tax on dividend can be reclaimed. If I may ask in this thread, how is this done? Is the reason that you cannot be taxed twice over the same income (dividend tax and income tax)?
I'm not sure the reason. I think it is an attempt to make sure foreign shareholders pay some tax on the dividends. If you are resident outside of Switzerland, you may be entitled to a partial refund, or none at all.

There is a form that you can download from the tax authority website, complete and post after/during your year-end taxes.

I'm not sure if it's possible to offset any taxes you might owe with the refund entitlement. By which I mean, if it is not possible to offset it you: a.) Only receive 65% of the dividend up front; b.) must pay income tax as if you received 100% of the dividend; c.) apply for and receive the outstanding 35% of the dividend some time later.
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Old 22.12.2014, 09:50
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Re: Swiss high dividend stocks - your favorites?

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I'm not sure the reason. I think it is an attempt to make sure foreign shareholders pay some tax on the dividends. If you are resident outside of Switzerland, you may be entitled to a partial refund, or none at all.

There is a form that you can download from the tax authority website, complete and post after/during your year-end taxes.

I'm not sure if it's possible to offset any taxes you might owe with the refund entitlement. By which I mean, if it is not possible to offset it you: a.) Only receive 65% of the dividend up front; b.) must pay income tax as if you received 100% of the dividend; c.) apply for and receive the outstanding 35% of the dividend some time later.
Tax rates are low in CH, tax evasion is not a criminal offence just an administrative matter. By paying people to comply, they are more likely to do so

Refunds are paid very quickly, usually 6 weeks to 2 months whereas the tax return takes a year to be agreed.
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Old 22.12.2014, 13:49
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Re: Swiss high dividend stocks - your favorites?

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Why would I want high dividends which are taxable, much prefer zero yield with higher tax free capital gains.

BTW 65% of the SMI was just 3 stocks last time I looked.
This thread is not about what YOU want. If YOU want to start a thread discussing the merits of dividend growth investing vs. other investment strategies, by all means be my guest.

I was asking for 'ideas' for other high yield dividend growth investments. Why (as you insist):
1) I like to have an income stream from my investments
2) I like the discipline it puts on a company to not spend excessive amounts on buildings and other pet projects
3) I like that the dividend grows over time
4) Research has shown that in general dividends generate 2/3 of TSR

Having said all this, high yield and dividend growth do not exclude the possibility of share price increase... but I like being paid to wait. Good example: Zurich mentioned in my first post. 5% yield but also 20% share price growth since I bought it.
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Old 22.12.2014, 14:15
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Re: Swiss high dividend stocks - your favorites?

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This thread is not about what YOU want. If YOU want to start a thread discussing the merits of dividend growth investing vs. other investment strategies, by all means be my guest.

I was asking for 'ideas' for other high yield dividend growth investments. Why (as you insist):
1) I like to have an income stream from my investments
2) I like the discipline it puts on a company to not spend excessive amounts on buildings and other pet projects
3) I like that the dividend grows over time
4) Research has shown that in general dividends generate 2/3 of TSR

Having said all this, high yield and dividend growth do not exclude the possibility of share price increase... but I like being paid to wait. Good example: Zurich mentioned in my first post. 5% yield but also 20% share price growth since I bought it.
Certainly not true of Berkshire Hathaway, which paid 1 dividend in the 70's.
You don't say when you bought Zurich, however if its more than a year your really not winning the game.
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Old 22.12.2014, 14:20
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Re: Swiss high dividend stocks - your favorites?

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Certainly not true of Berkshire Hathaway, which paid 1 dividend in the 70's.
You don't say when you bought Zurich, however if its more than a year your really not winning the game.
Did you buy BH in the 1970's? No you did not. You also did not buy Microsoft at IPO or Apple in 200x. Etc.

Back to the original point of this thread: what other high yield and/or dividend growth stocks are there on the Swiss stockmarket (also mid/small cap)?
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Old 22.12.2014, 14:27
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Re: Swiss high dividend stocks - your favorites?

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Did you buy BH in the 1970's? No you did not. You also did not buy Microsoft at IPO or Apple in 200x. Etc.

Back to the original point of this thread: what other high yield and/or dividend growth stocks are there on the Swiss stockmarket (also mid/small cap)?
Well I retired at 52 so my stock selection has not been bad shall we say. Having been laughed at here with several stock picks, the funniest one being when I said I wanted to put 90% of my net worth in Apple 18 months ago.

Anyway, I suspect your total return going forward over 5/10/20 years won't beat Terry Smith's fund Smith. www.fundsmith.eu
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Old 22.12.2014, 14:36
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Re: Swiss high dividend stocks - your favorites?

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Well I retired at 52 so my stock selection has not been bad shall we say. Having been laughed at here with several stock picks, the funniest one being when I said I wanted to put 90% of my net worth in Apple 18 months ago.

Anyway, I suspect your total return going forward over 5/10/20 years won't beat Terry Smith's fund Smith. www.fundsmith.eu
Let me guess, you live on a yacht, 'bang' top fashion models more often than Leo DiCaprio, are 6ft5 and have a huge phallus?
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Old 22.12.2014, 14:50
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Re: Swiss high dividend stocks - your favorites?

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Well I retired at 52 so my stock selection has not been bad shall we say. Having been laughed at here with several stock picks, the funniest one being when I said I wanted to put 90% of my net worth in Apple 18 months ago.
You were lucky, this year was lousy for Blackberry's, so I am told
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Old 22.12.2014, 15:33
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Re: Swiss high dividend stocks - your favorites?

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I'm not sure the reason. I think it is an attempt to make sure foreign shareholders pay some tax on the dividends. If you are resident outside of Switzerland, you may be entitled to a partial refund, or none at all.
I think it's more about banking secrecy and all that. In other words, its not a crime to make false statements on your tax form, provided these "errors" are to your disadvantage. Thus if you don't mention these investments on your tax return, by forgoing the tax refund you are only harming yourself. Thus you can legally hide stuff from the government (as the bank is also required to be secreative about these investments) without that amounting to tax evasion. This is considered a fundamental right, as people may have entirely legitimate reasons for not wanting to disclose wealth (think of Jews hiding away their money in the Holocaust etc).

If you are a foreign investor, you are taxable in your home country, so this is not really a loophole, unless you are lying on your tax return.
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Old 22.12.2014, 16:01
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Re: Swiss high dividend stocks - your favorites?

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You were lucky, this year was lousy for Blackberry's, so I am told
I don't think it was luck, Apple was trading for 8 years profits less cash on hand. The most valuable brand in the world valued at ZERO. It's not very often in a lifetime that you will get something like that handed to you on a plate. Of course most people could not see it because they listen to the daily noise of the financial press.
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Old 22.12.2014, 16:11
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Re: Swiss high dividend stocks - your favorites?

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Back to the original point of this thread: what other high yield and/or dividend growth stocks are there on the Swiss stockmarket (also mid/small cap)?
The following Swiss stocks pay a taxable dividend or ROC...

Ticker Short Name Proj 12M Dvd Yld
ZURN VX Equity ZURICH INSURANCE 5.50
SREN VX Equity SWISS RE AG 5.01
SCMN VX Equity SWISSCOM AG-REG 4.21
BALN VX Equity BALOISE HOL-REG 4.12
ABBN VX Equity ABB LTD-REG 3.44
SYNN VX Equity SYNGENTA AG-REG 3.30
SGSN VX Equity SGS SA-REG 3.29
UBSG VX Equity UBS GROUP AG 3.23
ADEN VX Equity ADECCO SA-REG 3.21
KNIN VX Equity KUEHNE & NAGEL-R 3.12
NESN VX Equity NESTLE SA-REG 3.04
ROG VX Equity ROCHE HLDG-GENUS 3.03
GIVN VX Equity GIVAUDAN-REG 2.79
NOVN VX Equity NOVARTIS AG-REG 2.79
CSGN VX Equity CREDIT SUISS-REG 2.77
SLHN VX Equity SWISS LIFE H AG 2.53
GEBN VX Equity GEBERIT AG-REG 2.50
CLN VX Equity CLARIANT AG-REG 2.34
SIK VX Equity SIKA AG-BR 2.23
HOLN VX Equity HOLCIM LTD-REG 2.04
LONN VX Equity LONZA GROUP -REG 1.96
CFR VX Equity CIE FINANCI-REG 1.80
GALN VX Equity GALENICA -REG 1.78
SCHP VX Equity SCHINDLER HLD-PC 1.73
SOON VX Equity SONOVA HOLDING A 1.69
UHR VX Equity SWATCH GROUP-BR 1.67
BAER VX Equity JULIUS BAER GROU 1.55
ATLN VX Equity ACTELION LTD-REG 1.18
ARYN VX Equity ARYZTA AG 0.97
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Old 22.12.2014, 16:25
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Re: Swiss high dividend stocks - your favorites?

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The following Swiss stocks pay a taxable dividend or ROC...

Ticker Short Name Proj 12M Dvd Yld
ZURN VX Equity ZURICH INSURANCE 5.50
SREN VX Equity SWISS RE AG 5.01
SCMN VX Equity SWISSCOM AG-REG 4.21
BALN VX Equity BALOISE HOL-REG 4.12
ABBN VX Equity ABB LTD-REG 3.44
SYNN VX Equity SYNGENTA AG-REG 3.30
SGSN VX Equity SGS SA-REG 3.29
UBSG VX Equity UBS GROUP AG 3.23
ADEN VX Equity ADECCO SA-REG 3.21
KNIN VX Equity KUEHNE & NAGEL-R 3.12
NESN VX Equity NESTLE SA-REG 3.04
ROG VX Equity ROCHE HLDG-GENUS 3.03
GIVN VX Equity GIVAUDAN-REG 2.79
NOVN VX Equity NOVARTIS AG-REG 2.79
CSGN VX Equity CREDIT SUISS-REG 2.77
SLHN VX Equity SWISS LIFE H AG 2.53
GEBN VX Equity GEBERIT AG-REG 2.50
CLN VX Equity CLARIANT AG-REG 2.34
SIK VX Equity SIKA AG-BR 2.23
HOLN VX Equity HOLCIM LTD-REG 2.04
LONN VX Equity LONZA GROUP -REG 1.96
CFR VX Equity CIE FINANCI-REG 1.80
GALN VX Equity GALENICA -REG 1.78
SCHP VX Equity SCHINDLER HLD-PC 1.73
SOON VX Equity SONOVA HOLDING A 1.69
UHR VX Equity SWATCH GROUP-BR 1.67
BAER VX Equity JULIUS BAER GROU 1.55
ATLN VX Equity ACTELION LTD-REG 1.18
ARYN VX Equity ARYZTA AG 0.97
THank you Amy. Better list than I got from here:
http://www.topyields.nl/Top-dividend-yields-of-SMI.php

Still like topyields, it's an easy place to get ideas just like seekingalpha.com
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Old 22.12.2014, 18:00
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Re: Swiss high dividend stocks - your favorites?

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I don't think it was luck, Apple was trading for 8 years profits less cash on hand. The most valuable brand in the world valued at ZERO. It's not very often in a lifetime that you will get something like that handed to you on a plate. Of course most people could not see it because they listen to the daily noise of the financial press.
It's a well know fact that us mere mortals are not as smart as you fatmanfilms
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Old 22.12.2014, 18:30
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Re: Swiss high dividend stocks - your favorites?

UBS Customers have access some interesting statistics to help pick stocks on the basis of yield or price earnings ratios, like this for instance on the SMI, which I created a couple of minutes ago. You'll see that the that nothing is very cheap (except Transocean - and there is a good reason for that). Click to enlarge . . .
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swiss-high-dividend-stocks-your-favorites-ubs-smi.jpg  
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Old 22.12.2014, 18:54
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Re: Swiss high dividend stocks - your favorites?

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I don't think it was luck, Apple was trading for 8 years profits less cash on hand. The most valuable brand in the world valued at ZERO. It's not very often in a lifetime that you will get something like that handed to you on a plate. Of course most people could not see it because they listen to the daily noise of the financial press.
I think you have to admit an element of luck here, and to suggest that it is a sound investment strategy to put 90% of your net worth in a single company is, at least, an unconventional recommendation. Take Apple, for instance. It's fortunes were very dependent on the charismatic leadership of one person, Steve Jobs. What future would Apple have had if if he succumbed to illness a bit earlier or decided to immerse himself in Zen Buddhism ?
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