Is Dividend Growth Investing the Right Strategy?

Investing and Markets šŸ“ˆ
21

Nice. Just Ireland that get screwed so

22

@shane-aurora Thatā€™s interesting - I didnā€™t know that. In the UK the max ISA was stuck at around 7k for a few years, itā€™s only relatively recently that it was increased quite significantly up to 20k.

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23

You guys also have Ā£8k capital gains/dividend allowance per annum or something like that too right?

Another thing bad about Ireland is we have to pay Deemed Disposal on ETFā€™s after 8 years. Effectively an exit tax and itā€™s taxed at 41%

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24

I think this year the capital gains tax kicks in after the first Ā£12k of gains. Theyā€™ve gradually been moving it up for years.

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The allowance is only Ā£2K on dividends now, they actually reduced it from Ā£5K. That makes the ISA super important for someone like me who is trying to build up passive income

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26

And thatā€™s on the income from the dividend isnā€™t it? So you can earn 2k of dividend income per year (outside an isa) before you then start paying tax on that at either 7.5%,32.5% or 38.5% whatever band youā€™re in. But you can still make a gain on any shares you own upto the cgt tax allowance of 20k before you then start paying any tax on the profit of your share holdings.

Like you said dave, ISAs are the most important account you can havd if investing reasonable amounts over a long time frame. No tax on any holdings withing that account.

And they say tax doesnā€™t have to be taxing :joy:.

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27

Very gradually - itā€™s gone up less than 2k in the last 10 years. Also worth noting that it only kicks in when the profit is realised ( ie when you sell ) and you can offset any losses ( I knew these RBS shares would be of some use )

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My point being that gradual increases over the long term has seen the allowance grow around 70% in 20 years, where during the same span @shane-aurora hasnā€™t seen any increase whatsoever in Ireland.

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29

Iā€™m doing something about it rather than just moaning like some people here (Ireland not the forum). Iā€™m getting out of Dodge and moving to Portugal :joy:

30

Worse places to move to :joy:

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31

I quite like this strategy, but I couldnā€™t find any good resource for UK investors. Investing in US shares is good for diversification, but it comes at the cost of an additional risk (currency fluctuation). Does anyone know of a good website to screen UK shares using dividend parameters (not just yield, but how many years in a row the dividend has increased by at least x%)?

32

Think Dividend Max is the best one off the top of my head.

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33

Heard on the news this morning that there are changes coming on this. Not sure if they are targeting billionaires, millionaires or Joe Bloggs. Iā€™m sure you already know, just an FYI, in case you donā€™t Shane.

34

:arrow_up: I mean Portuguese l tax breaks

35

Iā€™m over here now. If I can get legally locked in for 10 years Iā€™ll take out rent for feb 1. AFAIK Iā€™ll be able to do it if I get in the door. As I suggested before I hope the pull the golden visa before messing with the NHR. It will affect a lot of Brits going forward but as far as I know theyā€™ll be able to continue their status if theyā€™re on it. There will be a cut off point which Iā€™ll get in before hopefully

Meeting a solicitor tomorrow on the NHR visa. Praying that gov party are just talking nonsense. Promise 100% of pledgesā€¦deliver 20%

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36

Hope it works out

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37

Arethere any good books/links to read on the benefits of Dividend Investing?

Iā€™m thinking of opening up my portfolio to more Dividend Stocks, but I guess Iā€™ve just always questioned the benefit of it. I mean, donā€™t get me wrong, the idea of passive income or ā€œliving off your dividendsā€ sounds great - but to be able to get that point, you need a huge portfolio and I guess Iā€™ve always been of the option that a small drop in overall price can basically wipe out the value of your dividend.

I realise that this probably makes me sound very naive, so some decent reading sounds like the order of the day!

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38

The Intelligent Investor by Benjamin Grahamā€¦Warren Buffets Mentor.

Breaks down all the principles Buffet stands by when selecting a stock, Iā€™d recommend it :+1:t3:

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39

Good luck with everything. Its a bold move and I hope it works out great, you only live once

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41

It doesnā€™t make much sense to have a preference for dividend paying / dividend growing stocks.

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