Henderson Far East Income Share Discussion Threads

[goldpiguk] 04/11/2022 11:35

Hi Melton,

Your comments about dividend tax rates are from the heart.

Given that dividends will remain tax-free in both pension funds and ISA's the impact of a dividend tax increase on financial markets will be minimal.

The pensions industry had c.£2.2 trillion invested at the end of 2019 and the most recent figure I can find for stocks and shares ISA's is c.£584 billion at the end of 2018/9 tax year.

Higher taxes on dividend income and reduction or abolition of the £2,000 dividend tax-free allowance seem certain in the November 'budget', after the mess Liz Truss made.

You are watching an old political game. Labour wants dividends to be taxed at the same rates as income tax. The Tories are thinking about an additional 1.25% increase on top of the 1.25% already announced by Jeremy Hunt meaning a 10% dividend tax for basic rate taxpayers. Which would most investors prefer?


Under a higher dividend tax regime, HFEL may not be as appealing outside a SIPP or ISA. After the 'budget' I will certainly be reviewing my investments to make them even more tax efficient. (My HFEL shares are all held within my ISA.)

Goldpig

[scruff1] 04/11/2022 10:31

Chancellor was a disaster as Health minister. Looking on track for a repeat at the Treasury. He is a Tory isnt he?

[melton john] 04/11/2022 08:05

Let's hope the chancellor keeps his sticky fingers off them divis. If holders of divi payers are taxed more, why hold them, price goes down, foreign companies take them over, charge the company for whatever to make sure no profit in UK. Chancellor shot himself in the foot.

[mister md] 04/11/2022 07:44

Happy to collect all these 7%,8%,9% dividends in various shares - long may it continue. With everyone in growth stocks the shift to value stocks has only just started imho.

[carpingtris] 04/11/2022 07:38

HSI was up well too so hopefully HFEL has a good day.

[panshanger1] 04/11/2022 07:35

Yes dividend looks safe for now

[carpingtris] 04/11/2022 07:31

'After paying the dividend, we will once again be adding a moderate amount to the revenue reserve, which we use to smooth the dividend when market conditions are severe.'

That's a good positive :)

[unastubbs] 04/11/2022 07:28

TQ skinny, missed that

[superiorshares] 01/11/2022 04:38

You have a process going on at the moment.
The ultra Woke US trying to hold onto its
Number one status .
This will affect all of Asia's economy .
At the end of the day there will be one winner and it ain't the US .
Wait for a further collapse and then invest with a 15 year view.
My own opinion.... which will be correct .

[tim 3] 29/10/2022 15:38

Thanks Kiwi.

[kenmitch] 29/10/2022 12:36

And Mail on Line has this extraordinary article on the real reasons for those China covid lockdowns! You’ll be gripped from the start and the forced rounding up of everyone on an IKEA store! Frightening.

[kiwi2007] 29/10/2022 11:22

tim 3 - Too much exposure to China...

Today's FT has a good article which goes some way to explaining it..



'If you didn't pull out of China in 2021 at the latest, you were not paying attention.'

[tim 3] 29/10/2022 09:47

Well the last time it was this low it eventually recoverd to over £3.

Heavily invested here so not adding more.

A little concerned as to why this is so consistently weak for the last 2 years.

[zac0_4] 28/10/2022 22:56

Why the talk of a dividend cut? The half yearly report doesn't give any indication that one is on the cards.

[scruff1] 28/10/2022 20:11

ford
Fair comment

[fordtin] 28/10/2022 15:45

Thanks Skinny, I've edited my post to replace the link with a reference to your post.

Scruff1, it would matter to me. At a big enough discount I would consider doubling up. Otherwise I would probably sell up and move on to what I would hope will be a more reliable income source.

[skinny] 28/10/2022 11:44

fordtin - that's an image address,

[scruff1] 28/10/2022 11:39

Wasnt really what I was thinking as the share price generally follows a co.s NAV but more that if the dividend is cut it will indicate that the performance of its assets is underperforming and will make it less atractive. Would it matter what the discount was?

[fordtin] 28/10/2022 10:40

scruff1,

The share price has followed NAV pretty closely for the last 10 years.

(see skinny's post #1201,the link I originally posted was a bit long)

So, I guess you're suggesting a dividend cut would put an end to the historic trend to trade at a premium to NAV.

In which case, what percentage discounts are you predicting in the event of 10% div reduction, 20% div reduction, 30% div reduction etc.

[scruff1] 28/10/2022 10:05

The chart doesnt look good but if the divi doesnt hold it will look a lot worse

[skinny] 28/10/2022 09:31

I first bought these in 2014 , sold in 2021 and bought back twice this year - the chart doesn't look great - particularly over 5 years, but the yield is becoming impelling.