Fully Franked Dividend Stripping Managed Fund

• 21 March 2007

• #1

watsonc

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Hi everyone,

just wondering if there is a managed fund which specialises in fully franked dividend stripping, and sends you the checks in the mail (so to speak)???

If not, what is the closest thing to this???

Cheers

 

• 21 March 2007

• #2

money tree

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a fund like that would never be legal

any individual can make $5k a year doing it with the right know-how

what cheques would you be receiving? stocks fall by the div amount once ex-div, so who would cop the capital loss?

dividend stripping is not about getting the cash divs from the company. Its about FRANKING CREDITS

 

• 21 March 2007

• #3

The Y-man

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MQ Income Timing Fund - unfortunately only sends you a cheque ONCE A YEAR......

You also get some (small) exposure to Singapore and Hong Kong divs....

http://www.macquarie.com.au/emg/mq/mq_specialist_funds/mq_income_timing_fund.htm

Cheers,

The Y-man

 

• 21 March 2007

• #4

watsonc

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If you know what you are doing, and time things right, you can minimise capital lose, and potentially receive 6 or 7 div payouts from different campanys throughout a 12 month period. Is this TRUE???

Why couldn't a managed fund do this for you for a small fee???

 

• 21 March 2007

• #5

money tree

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yes its true

a managed fund cant do it because a fund invests the FUNDS $$$$ & doesnt receive franking credits. You need a BROKER not a fund. Funds in the business of exploiting tax law are known as ILLEGAL.

 

• 21 March 2007

• #6

watsonc

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In general a stock will rise in price over the 45 days leading up to the ex-div date - so capital lose is potentially very little, zero, or positive!

After one stock goes ex-div, buy into another company that is about to go ex-div in a 45 days.

If all these divs are fully franked that would be awesome come tax time.

 

• 6 May 2007

• #7

Y

yonnie

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hi folks,

I think I read somewhere that the 45-day rule doesn`t count for small investors

 

• 6 May 2007

• #8

doctorj

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A generous chap by the name of Don Waterfield (aka Rozella) has been posting about dividend stripping for years here and at other forums. He's posted enough information and live trades that people shouldn't have too many problems understanding the risks and learning how to do it.