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fully franked yield

Discussion in 'Managed Funds & Index Funds' started by bdang007, 30th May, 2007.

  1. bdang007

    bdang007 Member

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    Hey
    I was wondering if anyone knew of any managed funds that has had a strong fully franked yield in the past 3-5 years? And how would I be able to view past performance of each year for these funds (if possible at all)?

    Thanks!!
     
  2. Rod_WA

    Rod_WA Well-Known Member

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    I don't know a MF that gives fully franked dividends.

    But you might be interested in the Vanguard High Yield Australian Shares fund, which has beaten the ASX200 (ex LPTs) Accumulation Index by about 1.7% financial year to date. I have attached the latest info sheet.

    In terms of dividends, in the 2005-2006 FY, the dividend was 7.55 cpu at 57.8% franking, which at 1 July 2005 unit purchase price of $1.1590 represented a year end dividend yield of 6.51%, or grossed up at 8.13%.
    Hope this helps.
     

    Attached Files:

  3. BladeCA

    BladeCA Member

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    Have a look at funds that have Imputation in there title These tend to hold stocks that pay dividends with a high level of franking. Theres BT Imputation, CFS Imputation (which I hold).

    Go to a place like investsmart and search for funds, they list many types and its easy to find the type you are looking for.
     
  4. bdang007

    bdang007 Member

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    thanks guys, i shall have a look at these and hopefully make the right decision on which one to invest in.
     
  5. Rod_WA

    Rod_WA Well-Known Member

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    Still, imputation funds don't really return fully franked yield, since like all MFs, there is invariably a capital gain distribution component, eg CFS Imputation Fund distribution 2005/2006 was 26.6% franked, and 14.3% franking predicted for 2006/2007, see the attached summary.
    Ouch, the 1 year performance of CFS Imp is -7% compared to the index.
    Ps. Why wouldn't a high yield fund hold Wesfarmers??
     

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  6. coopranos

    coopranos Well-Known Member

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    Why not just go with Telstra or pick a handful of ASX200 shares that pay FF divs? You will pay less in fees, can add to or exit your position in a moments notice, and get the highest possible franking creds.
     
  7. bdang007

    bdang007 Member

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    Thanks for the contributions, yes I was thinking of just buying a collection of high franking dividend companies as well... is there a list of companies that offer high franking dividends available to the public?
     
  8. DaveA

    DaveA Well-Known Member

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    amp is another one, they also have a capital distribution which isnt taxed at all (its a reduction in cost when sold), they had nearly a 9% yield last financial year... just finished doing an assignment on it...

    disclaimer.....
     
  9. Rod_WA

    Rod_WA Well-Known Member

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    I agree entirely.

    I'm a big fan of FF dividends. My portfolio is biased towards them, in particular WES, CBA, ANZ, WBC, TLSCA, AMP, IAG, SUN. In resources, I'm overweight in BHP, RIO and WPL.

    Everyone should be heavy in the banks. They pay ff yields of >4% (in a correction you might get >4.5%). Since they're fully franked, if you gear them, you get a very nice exposure for little outlay.
     
  10. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Dogs of the Dow?

    Hi guys,

    I read a great article in the AFR some years back about the "Dogs of the Dow (or Dingoes Down Under)". Basically, its a portfolio that you construct yourself by buying the top 10 yielding stocks in the index (not sure which index specifically, but lets say ASX50 for Aus). TLS was one of these when they ran the article. You hold them for 12 months then rebalance your portfolio to reflect the new dogs.

    The returns of that portfolio with annual rebalancing was much higher than the index itself over time. A bit of a contrarian approach, but they're selected on yield. I guess the thinking is that good companies that have made it to the ASX50 for example but are on hard times but still paying a good yield are likely to turn their share price around. Even if they don't the yield is still nice for the year you hold. The share price turnaround is all bonus.

    Not a recommendation, just an observation. But I liked the sound of it at the time.

    Cheers,
    Michael.
     
  11. DaveA

    DaveA Well-Known Member

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    amp is an example to this, 2 years ago the share price was $5, paying out about 75 cents per share, now its up to $10 or so paying out 80 cents a share...

    i would love to do a test with that micheal, sounds quite interesting
     
  12. bdang007

    bdang007 Member

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    Thanks Michael, I will definitely put that into consideration. I like the sounds of it as well...