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Foreign shares

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

#476038

Postby monabri » January 25th, 2022, 2:40 pm

starter wrote:Are there any communities around looking internationally at high yielding shares?



You might consider looking at Investment Trusts that are "international" (in terms of the companies they hold). Some possible considerations if yield is the thing!

Some popular ones oft discussed on the Lemon Fool.

Henderson Far East (HFEL) https://www.hl.co.uk/shares/shares-sear ... td-ord-npv

Murray International (MYI) https://www.hl.co.uk/shares/shares-sear ... -25p-share

European Assets (EAT) https://www.hl.co.uk/shares/shares-sear ... st-gbp0.10

North American Investment Trust (NAIT) https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.05

Schroders Oriental (SOI) https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

JP Morgan European https://www.hl.co.uk/shares/shares-sear ... s-1.72072p

You could buy shares in 3 or 4 (or all!) of these and get a highish yield from a basket of shares in many countries. There is no with holding tax to worry about, no W8-BEN form to fill in every 3 years and the shares can be traded readily. The price you buy/sell is in Sterling.

I'd also suggest a browse through the previous postings on this forum..or do what you've done and pose the question, ;)

SalvorHardin
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Re: Foreign shares

#476044

Postby SalvorHardin » January 25th, 2022, 2:54 pm

starter wrote:Are there any communities around looking internationally at high yielding shares?

A good place to start is the REITs page on Seeking Alpha, which deals with American (and a few Canadian) Real Estate Investment Trusts.

You will find a lot of high yielding shares mentioned there; many are high yielding even by British standards. Though being foreign shares the HYP purists will not touch them with a bargepole (don't mention them on the other HYP board).

https://seekingalpha.com/dividends/reits

An example is a SL Green Realty, which owns and develops office blocks in New York City (mostly on Manhattan Island). Currently yielding 4.96% before withholding tax.

Bear in mind that REITs are not investment trusts, they are property companies with a special tax treatment.

starter
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Re: Foreign shares

#477684

Postby starter » February 1st, 2022, 8:12 am

A quick question. I'm looking at buying IBM's London listed shares (LSE:IBM) which I notice are priced and pay dividends in dollars as well as having their primary listing and HQ in the United States.

I'm assuming that I will still be able to hold them within an ISA without suffering withholding tax as it's a UK listing, even if it has every other symptom of being a US share.

Edit: I notice the ISIN for LSE:IBM is US4592001014 so a foreign security identifier for what it's worth.

1nvest
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Re: Foreign shares

#477688

Postby 1nvest » February 1st, 2022, 8:34 am

monabri wrote:
starter wrote:Are there any communities around looking internationally at high yielding shares?



You might consider looking at Investment Trusts that are "international" (in terms of the companies they hold). Some possible considerations if yield is the thing!

Some popular ones oft discussed on the Lemon Fool.

Henderson Far East (HFEL) https://www.hl.co.uk/shares/shares-sear ... td-ord-npv

Murray International (MYI) https://www.hl.co.uk/shares/shares-sear ... -25p-share

European Assets (EAT) https://www.hl.co.uk/shares/shares-sear ... st-gbp0.10

North American Investment Trust (NAIT) https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.05

Schroders Oriental (SOI) https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

JP Morgan European https://www.hl.co.uk/shares/shares-sear ... s-1.72072p

You could buy shares in 3 or 4 (or all!) of these and get a highish yield from a basket of shares in many countries. There is no with holding tax to worry about, no W8-BEN form to fill in every 3 years and the shares can be traded readily. The price you buy/sell is in Sterling.

I'd also suggest a browse through the previous postings on this forum..or do what you've done and pose the question, ;)

Will not the funds (Investment Trusts) themselves have incurred US dividend withholding taxes though, so just minus the inconvenience of a relatively simple W8-BEN form and likely more cost efficient FX conversion rates, countered by the funds expenses/fees?

monabri
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Re: Foreign shares

#477711

Postby monabri » February 1st, 2022, 9:47 am

1nvest wrote:
monabri wrote:
starter wrote:Are there any communities around looking internationally at high yielding shares?



You might consider looking at Investment Trusts that are "international" (in terms of the companies they hold). Some possible considerations if yield is the thing!

Some popular ones oft discussed on the Lemon Fool.

Henderson Far East (HFEL) https://www.hl.co.uk/shares/shares-sear ... td-ord-npv

Murray International (MYI) https://www.hl.co.uk/shares/shares-sear ... -25p-share

European Assets (EAT) https://www.hl.co.uk/shares/shares-sear ... st-gbp0.10

North American Investment Trust (NAIT) https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.05

Schroders Oriental (SOI) https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

JP Morgan European https://www.hl.co.uk/shares/shares-sear ... s-1.72072p

You could buy shares in 3 or 4 (or all!) of these and get a highish yield from a basket of shares in many countries. There is no with holding tax to worry about, no W8-BEN form to fill in every 3 years and the shares can be traded readily. The price you buy/sell is in Sterling.

I'd also suggest a browse through the previous postings on this forum..or do what you've done and pose the question, ;)

Will not the funds (Investment Trusts) themselves have incurred US dividend withholding taxes though, so just minus the inconvenience of a relatively simple W8-BEN form and likely more cost efficient FX conversion rates, countered by the funds expenses/fees?


I was focusing on simplicity.

Effectively, does one seek to establish a " foreign" HYP, possibly several foreign HYPs in different regions/countries? This might involve buying shares in 15 to 20 companies in each region ( say the US, Europe or Asia) thus ending up with a collection of 40 (60,80) shares along with the cost of buying these shares on a foreign exchange (eventual selling costs). A basket of relatively high yield shares could be purchased with just 3 buys, maybe at a discount ( to NAV). Of course, one can buy a few high yield shares here and there but which ones, how much research do we need to do before buying shares in an individual foreign company? It's difficult enough establishing a robust UK HYP ;)

Next, what happens if one or two of your shares in Europe ( or Asia) have a rights issue or some other corporate action...the individual has to deal with the paperwork.

Then there is pedigree, my track record of buying and managing shares "in foreign " is very limited whereas some funds have many years of experience and more resources.

Then, as demonstrated recently, in the event of unforseen events, Investment Trusts might have the ability to draw on reserves to maintain dividends when individual companies are tightening their belts.

(Don't fund managers seek to reclaim some of the withholding taxes whereas an individual would be on their own doing this?....I don't know but would be interested to find out if anyone can help?)

ADrunkenMarcus
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Re: Foreign shares

#482226

Postby ADrunkenMarcus » February 22nd, 2022, 9:16 pm

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

MM

ADrunkenMarcus of this parish was an advocate viewtopic.php?f=93&t=25400&p=459097&hilit=kone#p450364


I am still. :)

Kone has declared a (modest) special dividend for 2021, marking the second consecutive year they have paid one. The current free cash flow yield is a little under 4 percent, rising to 5 percent or so on 2024 consensus forecasts. Moreover, the amount of net cash that Kone is forecast to have on its balance sheet by 2024 equates to 9.5 percent of its current market capitalisation. Earnings are forecast to rise 20 percent between 2022 and 2024, while its average return on capital employed is 37.2 percent over ten years. The share price is also down about 33 percent on its 2020 peak.

I built my position between April 2017 and October 2018 and intend to hold on a long term basis, however if I had free cash to invest right now then Kone would be a top candidate for a top up.

Best wishes


Mark


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