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Foreign shares

General discussions about equity high-yield income strategies
1nvest
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Re: Foreign shares

#463642

Postby 1nvest » December 6th, 2021, 8:44 pm

McDonalds MCD. Fundamentally is a globally diversified land holding, where the owned land is sub-let to individuals (franchise) in return for a cut of their restaurant profits. 2008/9 financial crisis IIRC saw MCD as one of the very few that didn't do a big-dipper.

Lootman
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Re: Foreign shares

#463647

Postby Lootman » December 6th, 2021, 8:53 pm

1nvest wrote:McDonalds MCD. Fundamentally is a globally diversified land holding, where the owned land is sub-let to individuals (franchise) in return for a cut of their restaurant profits. 2008/9 financial crisis IIRC saw MCD as one of the very few that didn't do a big-dipper.

The writer H.L. Mencken is attributed with the observation that: "No one ever went broke underestimating the intelligence of the American people/public".

My version of it is that nobody ever went broke by under-estimating the bad taste of the American people.

Which is why companies like McDonald's and Coco-Cola are perpetually good investments. Not to mention Starbucks whose coffee is truly awful and yet it sells like hot cakes.

Hold all three!

compscidude
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Re: Foreign shares

#464608

Postby compscidude » December 9th, 2021, 7:18 pm

I just picked up Verizon. PER <10, dividend >5% at the current price, 15 years of raising the dividend, revenues and profits very stable, Buffett is a fan.

Sadly 15% dividend withholding tax unless you have a SIPP.

May suit your interests.

comp

smileymiley
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Re: Foreign shares

#466246

Postby smileymiley » December 16th, 2021, 6:37 am

I realise that this would be off the radar for the majority of investors on this board and I offer it only to widen the discussion.

A bit of background I am a UK national based in Hong Kong who initially was a close follower of Motley Fool HYP in the early days (late 90's) and did pretty well. The strategy appealed and I have applied it to Hong Kong but with mixed success. However I have tweaked my criteria and currently have sizable investment in HK listed companies but not in much relevant for this discussion.

Some HK companies that may be relevant to this discussion:

- CK Infrastructure Holdings (1038.HK) - holders of utilities in UK, Canada, Australia, NZ, HK and China. Well managed, low debt, decent ratios, current yield 5.30%
- HK Telecom (9823.HK) - full service telecom company, run as a trust, great ratios but high debt, current yield 6.80%
- Global X HS High Dividend ETF (3110.HK) - invests in mainland large cap Chinese companies, current yield 7.40%

There are several others which can be found by looking at the composition of trusts like HFEL and investing directly.
The advantage in investing in HK is no income or capital gains tax. The downside is political risk and FX risk as you are effectively investing with US$.

(Full disclosure - I own CK Infrastructure and HKT)

TahiPanasDua
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Re: Foreign shares

#466457

Postby TahiPanasDua » December 16th, 2021, 5:39 pm

smileymiley wrote:I realise that this would be off the radar for the majority of investors on this board and I offer it only to widen the discussion.

A bit of background I am a UK national based in Hong Kong who initially was a close follower of Motley Fool HYP in the early days (late 90's) and did pretty well. The strategy appealed and I have applied it to Hong Kong but with mixed success. However I have tweaked my criteria and currently have sizable investment in HK listed companies but not in much relevant for this discussion.

Some HK companies that may be relevant to this discussion:

- CK Infrastructure Holdings (1038.HK) - holders of utilities in UK, Canada, Australia, NZ, HK and China. Well managed, low debt, decent ratios, current yield 5.30%
- HK Telecom (9823.HK) - full service telecom company, run as a trust, great ratios but high debt, current yield 6.80%
- Global X HS High Dividend ETF (3110.HK) - invests in mainland large cap Chinese companies, current yield 7.40%

There are several others which can be found by looking at the composition of trusts like HFEL and investing directly.
The advantage in investing in HK is no income or capital gains tax. The downside is political risk and FX risk as you are effectively investing with US$.

(Full disclosure - I own CK Infrastructure and HKT)


After about 40 years in the Hong Kong market, I finally cashed out last month. I started my stockholding career there. At the end, I had only 3 shares left in the portfolio: HSBC which I had held for most of that time, CKI Infrastructure and CLP (a local power generator).

While there are no dividend, CGT or inheritance taxes in Hong Kong, you are still liable to HMRC if you are UK resident. My investments did well but only after a very expensive education in the early years.

TP2

TUK020
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Re: Foreign shares

#466644

Postby TUK020 » December 17th, 2021, 7:42 am

TahiPanasDua wrote:
After about 40 years in the Hong Kong market, I finally cashed out last month. I started my stockholding career there. At the end, I had only 3 shares left in the portfolio: HSBC which I had held for most of that time, CKI Infrastructure and CLP (a local power generator).

While there are no dividend, CGT or inheritance taxes in Hong Kong, you are still liable to HMRC if you are UK resident. My investments did well but only after a very expensive education in the early years.

TP2

Was your decision to cash out a judgement on the long term prospects for the HK market?

TahiPanasDua
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Re: Foreign shares

#466649

Postby TahiPanasDua » December 17th, 2021, 8:26 am

TUK020 wrote:
TahiPanasDua wrote:
After about 40 years in the Hong Kong market, I finally cashed out last month. I started my stockholding career there. At the end, I had only 3 shares left in the portfolio: HSBC which I had held for most of that time, CKI Infrastructure and CLP (a local power generator).

While there are no dividend, CGT or inheritance taxes in Hong Kong, you are still liable to HMRC if you are UK resident. My investments did well but only after a very expensive education in the early years.

TP2

Was your decision to cash out a judgement on the long term prospects for the HK market?


Not really, though there are obvious risks posed by current political realities there. I personally think China will stop well short of actions that are disastrous for the market but, of course, it is impossible to know for sure.

There were a number of concurrent thoughts leading to the sale. In no particular order, we need to simplify our portfolio due to approaching gagadom. Apparently, our family would need to get conservatorship established in Hong Kong to get their hands on the goodies despite having a will. We have just upgraded our house to something more suitable for a pair of decrepit old fogies and some of the cash came in handy. The rest went back into the market.

TP2.

Wordchild
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Re: Foreign shares

#466776

Postby Wordchild » December 17th, 2021, 1:51 pm

Good post above from smileymiley. I personally feel Asia offers some of the best (safest even) equity yields around.
FWIW (full disclosure I own all of these)
China Mobile, ok I know the concerns but 8% plus yield 1x ev/ebitda ! Yes thats true! the company has about 40% of its market value in cash! Why buy Vod?
China Unicom , as above except less net cash but better yield and better growth, maybe the cheapest share I have encountered in 30 plus years of investing
CNOOC, 10% yielding oil co really cheap, forget BP check this out!
CK holdings, similar arguments to CKI as posted above (by smileymiley) , except you get most of CKI plus the ports and telecom (3 network) and Watsons , plus the boys in charge will ensure that this is the equity where the REAL money is made, nudge nudge, wink wink, read my lips, get my drift Mrs? etc etc! 6% yield plus buyback , obviously!
Swire Pacific, old school stuff In every way! All the value is in the incredibly cheap B class 6% yield , buy and forget!
Jardine Cycle, stuffed full of assets, probable 5.5 % yield next year overall trading is strong, just sit and wait for JM to buy you out , which they surely will within next 2 years.

Wordchild
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Re: Foreign shares

#466789

Postby Wordchild » December 17th, 2021, 2:23 pm

Wordchild wrote:Good post above from smileymiley. I personally feel Asia offers some of the best (safest even) equity yields around.
FWIW (full disclosure I own all of these)
China Mobile, ok I know the concerns but 8% plus yield 1x ev/ebitda ! Yes thats true! the company has about 40% of its market value in cash! Why buy Vod?
China Unicom , as above except less net cash but better yield and better growth, maybe the cheapest share I have encountered in 30 plus years of investing
CNOOC, 10% yielding oil co really cheap, forget BP check this out!
CK holdings, similar arguments to CKI as posted above (by smileymiley) , except you get most of CKI plus the ports and telecom (3 network) and Watsons , plus the boys in charge will ensure that this is the equity where the REAL money is made, nudge nudge, wink wink, read my lips, get my drift Mrs? etc etc! 6% yield plus buyback , obviously!
Swire Pacific, old school stuff In every way! All the value is in the incredibly cheap B class 6% yield , buy and forget!
Jardine Cycle, stuffed full of assets, probable 5.5 % yield next year overall trading is strong, just sit and wait for JM to buy you out , which they surely will within next 2 years.

Sorry I misspoke: China Mobile is around prospective 1.3/1.4 Evebitda

ADrunkenMarcus
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Re: Foreign shares

#467417

Postby ADrunkenMarcus » December 19th, 2021, 9:48 pm

MaraMan wrote:In Terry Smith's latest sermon he made a strong case for lift manufacterers such as Kone. Maybe worth considering?


Held since April 2017 on a - hopefully - 'buy and hold forever' basis. Kone increased their ordinary dividend moderately even in 2020 and paid a special on top!

Best wishes


Mark.

floyd3592
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Re: Foreign shares

#470922

Postby floyd3592 » January 6th, 2022, 5:57 pm

Some very interesting suggestions here.

How would one go about buying these shares? I have an US stock buying facility through my HSBC Premier bank account but don't know how I would purchase these non US stocks. I don't mind investing in USD and / or Euros and getting dividends in the same currencies...

Lootman
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Re: Foreign shares

#470945

Postby Lootman » January 6th, 2022, 7:20 pm

floyd3592 wrote:Some very interesting suggestions here.

How would one go about buying these shares? I have an US stock buying facility through my HSBC Premier bank account but don't know how I would purchase these non US stocks. I don't mind investing in USD and / or Euros and getting dividends in the same currencies...

Look and see if those non-US foreign shares have ADRs listed in the US. Many major international companies are listed that way meaning that you can buy them in the US market in US dollars and with US regulations and commissions.

Examples of companies with ADRs are Nestles, Toyota, Samsung, Total, Deutsche Bank etc.

Look out for how dividends will be taxed if this is in a taxable account, as you want to avoid any element of double taxation.

SalvorHardin
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Re: Foreign shares

#471010

Postby SalvorHardin » January 6th, 2022, 9:28 pm

floyd3592 wrote:Some very interesting suggestions here.

How would one go about buying these shares? I have an US stock buying facility through my HSBC Premier bank account but don't know how I would purchase these non US stocks. I don't mind investing in USD and / or Euros and getting dividends in the same currencies...

You can buy shares in many Canadian companies on the New York Stock Exchange, where they are quoted in US dollars.

I have three such; Bank of Montreal (BMO) Brookfield Asset Management (BAM) and Canadian Pacific (CP). BMO and CP pay dividends in Canadian dollars, BAM pays US dollar dividends.

Dod101
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Re: Foreign shares

#471023

Postby Dod101 » January 6th, 2022, 10:49 pm

SalvorHardin wrote:
floyd3592 wrote:Some very interesting suggestions here.

How would one go about buying these shares? I have an US stock buying facility through my HSBC Premier bank account but don't know how I would purchase these non US stocks. I don't mind investing in USD and / or Euros and getting dividends in the same currencies...

You can buy shares in many Canadian companies on the New York Stock Exchange, where they are quoted in US dollars.

I have three such; Bank of Montreal (BMO) Brookfield Asset Management (BAM) and Canadian Pacific (CP). BMO and CP pay dividends in Canadian dollars, BAM pays US dollar dividends.


But you can also hold many of these shares in Toronto with no disadvantage that I can see.

Dod

SalvorHardin
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Re: Foreign shares

#471063

Postby SalvorHardin » January 7th, 2022, 8:27 am

Dod101 wrote:But you can also hold many of these shares in Toronto with no disadvantage that I can see.

One advantage is that if you have US dollars, then when buying these shares you settle in US dollars and thus don't have to pay to convert from US dollars to Canadian dollars.

This was very useful for me in 2009 when Disney took over Marvel, paying shares and cash, when much of the cash was reinvested into Brookfield and Canadian Pacific. It also makes it a bit cheaper to switch from America companies to Canadian companies (as long as the Canadian company is quoted on the NYSE).

bruncher
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Re: Foreign shares

#473388

Postby bruncher » January 15th, 2022, 8:27 pm

floyd3592 wrote:Some very interesting suggestions here.

How would one go about buying these shares? I have an US stock buying facility through my HSBC Premier bank account but don't know how I would purchase these non US stocks. I don't mind investing in USD and / or Euros and getting dividends in the same currencies...


I bought Mitsubishi Corp in Sept 2020, in my AJ Bell ISA. It's up about 33% + decent dividends although some tax to pay and FX charges. I read about Warren Buffett buying into several large Japanese conglomerates which got me interested, also wanted to have some non-sterling and non-dollar denominated holdings.


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