BOE’s Cunliffe Says Resuming Bank Dividends Still Unclear ...

Are swaps the dividends of forex?

submitted by auesthesthicc to Forex [link] [comments]

ETF domicile, dividend leaks, and forex expenses

Recently in the /dutchfire subreddit someone was asking for recommendations of ETFs to invest in: https://www.reddit.com/DutchFIRE/comments/5zygx4/je_krijgt_100000_euro_welke_vier_etfs_kies_je/df4lmjo/
I noticed that most people are investing in USD products domiciled in the US (for example in VTI). However, I have been investing exclusively in EUR products domiciled in Ireland through DeGiro (VWRL). Most of the fee-free products that DeGiro offers are distributing, which means I am incurring in dividend leaks since you cannot recover dividend witholdings from Ireland (~12%). I also understand that in the case of products domiciled in the US, you can deduct all dividend witholdings in your tax report (at least in the Netherlands). If this were the whole story, it would make perfect sense for me to invest in US domiciled ETFs.
However, by investing in a different currency through DeGiro (and I guess all other brokers), one is also subject to a 0.1% forex spread in every EUUSD transaction. As such, whenever you buy or sell more ETFs, receive dividends and reinvest those dividends. For dividends the winner is clear: it is better to pay 0.2% in forex spread when investing through the US (0.1% when receiving dividends and 0.1% when reinvesting them) than losing 12% when investing through Ireland. But through Ireland you don't have forex costs when putting more money in your investments, whereas through the US you do pay an extra 0.1% over the total amount you invest.
So I made a crude simulation of the costs for two all-world stock ETFs with similar portfolios, VWRL and VT. The first is domiciled in Ireland, the second in the US. I supposed a 2.5% dividend yield for both.
Product Fund Expenses Forex Expenses Dividend Expenses Total Expenses VWRL 0.25% 0 12% * 2.5% = 0.3% 0.55% VT 0.11% 0.2% 0.1% * 2.5% ~ 0 0.31% 
So to me it seems that looking at the total costs it makes more sense to invest in US domiciled products like VT. My question is: are my calculations are too simplified? Did I forget something? I thought I had made these calculations in the past and that I reached the conclusion that Ireland domiciled ETFs were a better choice. However, looking back, it seems I miscalculated and that I should start thinking about changing my VWRL portfolio into VT as soon as possible!
Updates:
submitted by operte to eupersonalfinance [link] [comments]

My [19/F] boyfriend [21M] started trading (forex) a while back and it's finally paying dividends, and while I'm so glad for him, he's just become so consumed with how much he's making and how he's somehow better than "broke people" now ... he's becoming an arse ! Please help

Before anyone goes on about my username, Tony Adams is my favourite sporting legend K ... now thats out of the way
We've been together for 2 years, we did our gap year together, and when we met originally he'd come from hard economic background (his dad left them, came back a few years later jobless and then his mother had to support him)
He decided to start trading as a way of making extra money and only now is he starting to make loads of money, like LOADS, he has a trading business, where he trades on behalf of people and that's really helped him ...
Now that is absolutely brilliant I'm so happy for him, that means that he's constantly going on about how expensive his clothes are, he buys new shoes every week from Adidas and all of those places ... he buys versace underwear and feels obliged to let all of us know, puts pictures of himself up on Snapchat taking calls with stacks of money instead of phone ... and he's become really patronising about me wanting to be a teacher and live a comfortable life, apparently I need to aim to be mega rich, when really all I want is to become a professor one day, not be rolling in money ...
I sometimes dread being around him, because he's just going to talk about how expensive his clothes are and how broke everyone else is ! I was with a friend of mine and we were just chatting about life you know and it was great, and it's hard to have those conversations with him now, because all he's about is money. Also he's not investing it which scares me !
The point is while he's still great to be around, there's this side to him that is SO annoying and arrogant, I want to beat it out of him ! Help
tl;dr: My boyfriend had become so consumed by how rich he's become it's hard to be around him ! Help
submitted by TonyAdams123 to relationships [link] [comments]

Question about journaling shares to USD account.

When journaling shares (ex. AQN) from a CAD account to USD do the shares held move from TSX to NYSE or am I simply holding the TSX listed share in my USD account? Thank you for the help.
submitted by Lit_City to CanadianInvestor [link] [comments]

How can I make forex a way of making passive income

submitted by MXB45 to Forex [link] [comments]

Globe: Algonquin Power & Utilities receives big boost to five-year growth plan

https://www.theglobeandmail.com/business/article-algonquin-power-utilities-receives-big-boost-to-five-year-growth/
Canadian utilities with ambitious growth plans have found a new best friend in Zimmer Partners LP, a U.S. hedge fund that is paving the way for new infrastructure by making serious commitments to stock sales.
Algonquin Power & Utilities Corp. is the latest domestic player to benefit from founder Stuart Zimmer’s seal of approval. Back in December, the Oakville, Ont.-based company announced a five-year expansion strategy that called for $9.2-billion in spending on projects that include 10 wind and solar facilities in Quebec, Saskatchewan and eight U.S. states. Analysts calculated Algonquin needed to raise $350-million from stock sales each year to achieve its goals, an appetite for capital that didn’t go away when the world caught the novel coronavirus.
Enter Mr. Zimmer and his US$9-billion fund, which focuses on investments in energy and utility stocks. In early July, Algonquin landed a $350-million order for its shares from what it described in a press release and filings as a single U.S. institutional investor. Investment bankers working on the transaction confirm the investor was Zimmer Partners; the company and the hedge fund declined to comment. (The Globe and Mail is not identifying the investment bankers as they were not authorized to speak publicly about the deal.) Over three decades of investing in utilities, Mr. Zimmer has earned a reputation as a committed and supportive shareholder.
With a large initial order in hand, a team of dealers led by Scotia Capital and CIBC Capital Markets offered an additional $550-million of Algonquin stock to the public. This portion of the bought deal was subsequently boosted to $633-million, on the back of strong demand from individual investors, meaning Algonquin raised a total of $983-million. The company funded roughly three years of its five-year growth plan in one transaction.
The deal marked a dramatic debut for new chief executive Arun Banskota, who joined Algonquin as president in February from a U.S. power company and took over as chief executive from founder Ian Robertson in mid-July. In a press release, Mr. Banskota said the stock sale covers all of this year’s spending plans and “puts the company in a position of strength as it looks to soon begin executing on the 2021 portion of its capital program.”
The size of the transaction did not go unnoticed on the Street. “Although we were not surprised by the company raising equity at this time, we were not expecting an equity offering of this magnitude,” Nelson Ng, an analyst at RBC Dominion Securities, said in a report.
Analysts expressed much the same sentiment back in December, when Fortis Inc. sold $500-million of stock to Zimmer Partners as part of a $1.2-billion share sale, raising cash needed for the Newfoundland-based company’s planned $18.3-billion of projects over the next five years.
Zimmer Partners isn’t the only major institution willing to back Canadian infrastructure plays with big dreams. Brookfield Asset Management Inc. recently bought $350-million of preferred shares from Superior Plus Corp., money the propane distributor plans to spend on acquisitions. And a number of pension plans, including the Ontario Municipal Employees Retirement System, Alberta Investment Management Corp. and the Caisse de dépôt et placement du Québec, have made significant investments in publicly traded utilities.
Why are Zimmer Partners and other institutions willing to step up? On the surface, Zimmer Partners and public investors paid the same amount for Algonquin stock, buying shares for $17.10 each – the stock was trading at $17.52 prior to announcement of the deal, so all the buyers were getting new shares at a slight discount. Regulatory filings also show Algonquin’s institutional investor agreed to hold its stock for at least 45 days, precluding flipping the stock for a quick profit.
However, regulatory filings show Algonquin paid the hedge fund what’s known as a “commitment fee” equal to 2 per cent of the value of the shares it bought, or $7.2-million. Fortis paid a 1-per-cent commitment fee, or $5-million, when it sold shares to Zimmer last year. That small fee is effectively a discount for the institution – similar to buying shares for well below where they are trading – which helps these investors beat their performance benchmarks.
From Algonquin’s point of view, the commitment fee is well worth paying, as it is only half the 4-per-cent commission charged by dealers on the bought deal portion of the offering. And it allows an ambitious Canadian utility with a newly minted CEO to plan for growth during a pandemic with almost a billion bucks in the bank.
submitted by __justsayin__ to CanadianInvestor [link] [comments]

Why isn’t there a marketplace where you can trade all financial instruments currently available?

Like almost at all, you can trade shares and bonds.
Some have ETF, Forex, and dividends oriented stocks.
But they don't have a crypto and housing market, which is a pity.
Like I am searching for a platform where I can make all my investments at once. Instead of using Binance, Robinhood, and other platforms.
Do you guys also have this need, or am I a dreamer?
submitted by kristamurti to investing [link] [comments]

(NA) Looking for motivated people who want to make it out of the rat race together.

Im 17 year old Canadian in ontario, I love business ever since i heard about it. i knew i was doing something with it. I will be a successful Forex Trader. I will also invest long term dividends and possibly individual stocks. Everyone im talkin to aint motivated for shit and ill tell you right now. I aint gon be broke.
Im looking for people who are motivated, more my age but i don't care i just want to surround myself with intellectual people and people who dont give up easily. I have alot of possible ideas but honestly i was just going to stick to myself till i saw someone make a similar post. Then i thought hey might be worth a shot. If your around my area or know u tryna make money. PM me
submitted by Abxrg to Business_Ideas [link] [comments]

Bitcoin has more intrinsic value than stocks

A common argument thrown by traditional investors is that cryptocurrencies don't have an intrinsic value. The classical example is saying that Bitcoin is not as good as gold because you can build stuff with gold, while Bitcoin's only use is speculation, but I don't find this true at all.
First of all, you can use Bitcoin to pay fees to write into the most decentralized and robust database in history. That by itself has instrinsic value. And second but not less important, you can actually own Bitcoin easily. A lot of investors don't actually possess gold. They posses contracts that say that they own gold “somewhere” with no easy way or no way at all to redeem it. So you usually couldn't due anything with the gold you “own”. You cannot melt it, forge it, or anything.
Same for stocks. They often are not under your name. Heck, sometimes there are not even stocks involved at all. You only have a contract that tracks the price of them. So, a lot of people can't do anything with their stocks other than trading them through intermediaries and during trading hours/days. You usually don't receive a dividend or have a way to vote on the company's direction. Unlike some cryptocurrencies that actually provide you with that and you can actually own by yourself, unlike the gold, stocks, or forex, you probably would never be able to withdrawn (only your balance in a specific asset, not in any other of the assets you allegedly possess).
Yesterday I tried to discuss this on investing, and I got a lot of backlash, with a lot of people missing the point, thinking that I was suggesting buying stocks based on the dividends they offer or something similar, which is far from what I'm saying. So I thought about starting the same discussion in this community to see if the argument lands better or I'm really missing something here.
What do you think?
submitted by alive_consequence to Bitcoin [link] [comments]

Tech only Portfolios are too RISKY

I assume those of you on this sub are investing, not gambling. I also assume that y'all care about risk. If so, please read on.
I feel like several times a day I see a "portfolio" advice post for "portfolios" that is 100% tech. IMO, these portfolios will perform poorly and have extreme amounts of risk. In a loose sense, portfolios seek to balance many different equities to achieve an optimal risk/reward. This is done through diversification. If you're 100% tech (especially if it's only US tech) you have little to no diversification. If you want extreme risk, you're better off trading individual stock, options or even FOREX.
Why: There is a reasonable chance of a tech correction


Import case study (thanks investing)
Will all this actually happen?: Maybe, maybe not. I just wanted to show y'all that it's not unreasonable. Hence you must diversify to minimize downside risk.
What to do :
Even the pros love tech, but they're not 100% tech: https://wallethub.com/edu/hedge-fund-stocks/38113/
I'm long tech, buy it frequently and it makes up ~15-20% of my portfolio.
Edit: Nice example, I looked at what happened right before the last tech crash:
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=2000&firstMonth=8&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&portfolioNames=true&portfolioName1=Tech+Mutual+Fund&portfolioName2=SP+500&portfolioName3=Mix&symbol1=FSPTX&allocation1_1=100&allocation1_3=50&symbol2=SPY&allocation2_2=100&allocation2_3=50

submitted by z109620 to ETFs [link] [comments]

THROW YOUR FD's in FDS

Factset: How You can Invest in Hedge Funds’ Biggest Investment
Tl;dr FactSet is the most undervalued widespread SaaS/IT solution stock that exists
If any of you have relevant experience or are friends with people in Investment Banking/other high finance, you know that Factset is the lifeblood of their financial analysis toolkit if and when it’s not Bloomberg, which isn’t even publicly traded. Factset has been around since 1978 and it’s considered a staple like Bloomberg in many wealth management firms, and it offers some of the easiest to access and understandable financial data so many newer firms focused less on trading are switching to Factset because it has a lot of the same data Bloomberg offers for half the cost. When it comes to modern financial data, Factset outcompetes Reuters and arguably Bloomberg as well due to their API services which makes Factset much more preferable for quantitative divisions of banks/hedge funds as API integration with Python/R is the most important factor for vast data lakes of financial data, this suggests Factset will be much more prepared for programming making its way into traditional finance fields. According to Factset, their mission for data delivery is to: “Integrate the data you need with your applications, web portals, and statistical packages. Whether you need market, company, or alternative data, FactSet flexible data delivery services give you normalized data through APIs and a direct delivery of local copies of standard data feeds. Our unique symbology links and aggregates a variety of content sources to ensure consistency, transparency, and data integrity across your business. Build financial models and power customized applications with FactSet APIs in our developer portal”. Their technical focus for their data delivery system alone should make it stand out compared to Bloomberg, whose UI is far more outdated and complex on top of not being as technically developed as Factset’s. Factset is the key provider of buy-side portfolio analysis for IBs, Hedge funds, and Private Equity firms, and it’s making its way into non-quantitative hedge funds as well because quantitative portfolio management makes automation of risk management and the application of portfolio theory so much easier, and to top it off, Factset’s scenario analysis and simulation is unique in its class. Factset also is able to automate trades based on individual manager risk tolerance and ML optimization for Forex trading as well. Not only does Factset provide solutions for financial companies, they are branching out to all corporations now and providing quantitative analytics for them in the areas of “corporate development, M&A, strategy, treasury, financial planning and analysis, and investor relations workflows”. Factset will eventually in my opinion reach out to Insurance Risk Management a lot more in the future as that’s a huge industry which has yet to see much automation of risk management yet, and with the field wide open, Factset will be the first to take advantage without a shadow of a doubt. So let’s dig into the company’s financials now:
Their latest 8k filing reported the following:
Revenue increased 2.6%, or $9.6 million, to $374.1 million compared with $364.5 million for the same period in fiscal 2019. The increase is primarily due to higher sales of analytics, content and technology solutions (CTS) and wealth management solutions.
Annual Subscription Value (ASV) plus professional services was $1.52 billion at May 31, 2020, compared with $1.45 billion at May 31, 2019. The organic growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency movements, was 5.0%. The primary contributors to this growth rate were higher sales in FactSet's wealth and research workflow solutions and a price increase in the Company's international region
Adjusted operating margin improved to 35.5% compared with 34.0% in the prior year period primarily as a result of reduced employee-related operating expenses due to the coronavirus pandemic.
Diluted earnings per share (EPS) increased 11.0% to $2.63 compared with $2.37 for the same period in fiscal 2019.
Adjusted diluted EPS rose 9.2% to $2.86 compared with $2.62 in the prior year period primarily driven by an improvement in operating results.
The Company’s effective tax rate for the third quarter decreased to 15.0% compared with 18.6% a year ago, primarily due to an income tax expense in the prior year related to finalizing the Company's tax returns with no similar event for the three months ended May 31, 2020.
FactSet increased its quarterly dividend by $0.05 per share or 7% to $0.77 marking the fifteenth consecutive year the Company has increased dividends, highlighting its continued commitment to returning value to shareholders.
As you can see, there’s not much of a negative sign in sight here.
It makes sense considering how FactSet’s FCF has never slowed down:
https://preview.redd.it/frmtdk8e9hk51.png?width=276&format=png&auto=webp&s=1c0ff12539e0b2f9dbfda13d0565c5ce2b6f8f1a

https://preview.redd.it/6axdb6lh9hk51.png?width=593&format=png&auto=webp&s=9af1673272a5a2d8df28f60f4707e948a00e5ff1
FactSet’s annual subscriptions and professional services have made its way to foreign and developing markets, and many of them are opting for FactSet’s cheaper services to reduce costs and still get copious amounts of data and models to work with.
Here’s what FactSet had to say regarding its competitive position within the market of providing financial data in its last 10k: “Despite competing products and services, we enjoy high barriers to entry and believe it would be difficult for another vendor to quickly replicate the extensive databases we currently offer. Through our in-depth analytics and client service, we believe we can offer clients a more comprehensive solution with one of the broadest sets of functionalities, through a desktop or mobile user interface or through a standardized or bespoke data feed.” And FactSet is confident that their ML services cannot be replaced by anybody else in the industry either: “In addition, our applications, including our client support and service offerings, are entrenched in the workflow of many financial professionals given the downloading functions and portfolio analysis/screening capabilities offered. We are entrusted with significant amounts of our clients' own proprietary data, including portfolio holdings. As a result, our products have become central to our clients’ investment analysis and decision-making.” (https://last10k.com/sec-filings/fds#link_fullReport), if you read the full report and compare it to the most recent 8K, you’ll find that the real expenses this quarter were far lower than expected by the last 10k as there was a lower than expected tax rate and a 3% increase in expected operating margin from the expected figure as well. The company also reports a 90% customer retention rate over 15 years, so you know that they’re not lying when they say the clients need them for all sorts of financial data whether it’s for M&A or wealth management and Equity analysis:
https://www.investopedia.com/terms/f/factset.asp
https://preview.redd.it/yo71y6qj9hk51.png?width=355&format=png&auto=webp&s=a9414bdaa03c06114ca052304a26fae2773c3e45

FactSet also has remarkably good cash conversion considering it’s a subscription based company, a company structure which usually takes on too much leverage. Speaking of leverage, FDS had taken on a lot of leverage in 2015:

https://preview.redd.it/oxaa1wel9hk51.png?width=443&format=png&auto=webp&s=13d60d2518980360c403364f7150392ab83d07d7
So what’s that about? Why were FactSet’s long term debts at 0 and all of a sudden why’d the spike up? Well usually for a company that’s non-cyclical and has a well-established product (like FactSet) leverage can actually be good at amplifying returns, so FDS used this to their advantage and this was able to help the share’s price during 2015. Also, as you can see debt/ebitda is beginning a rapid decline anyway. This only adds to my theory that FactSet is trying to expand into new playing fields. FactSet obviously didn’t need the leverage to cover their normal costs, because they have always had consistently growing margins and revenue so the debt financing was only for the sake of financing growth. And this debt can be considered covered and paid off, considering the net income growth of 32% between 2018 and 2019 alone and the EPS growth of 33%
https://preview.redd.it/e4trju3p9hk51.png?width=387&format=png&auto=webp&s=6f6bee15f836c47e73121054ec60459f147d353e

EBITDA has virtually been exponential for FactSet for a while because of the bang-for-buck for their well-known product, but now as FactSet ventures into algorithmic trading and corporate development the scope for growth is broadly expanded.
https://preview.redd.it/yl7f58tr9hk51.png?width=489&format=png&auto=webp&s=68906b9ecbcf6d886393c4ff40f81bdecab9e9fd

P/E has declined in the past 2 years, making it a great time to buy.

https://preview.redd.it/4mqw3t4t9hk51.png?width=445&format=png&auto=webp&s=e8d719f4913883b044c4150f11b8732e14797b6d
Increasing ROE despite lowering of leverage post 2016
https://preview.redd.it/lt34avzu9hk51.png?width=441&format=png&auto=webp&s=f3742ed87cd1c2ccb7a3d3ee71ae8c7007313b2b

Mountains of cash have been piling up in the coffers increasing chances of increased dividends for shareholders (imo dividend is too low right now, but increasing it will tempt more investors into it), and on top of that in the last 10k a large buyback expansion program was implemented for $210m worth of shares, which shows how confident they are in the company itself.
https://preview.redd.it/fliirmpx9hk51.png?width=370&format=png&auto=webp&s=1216eddeadb4f84c8f4f48692a2f962ba2f1e848

SGA expense/Gross profit has been declining despite expansion of offices
I’m a bit concerned about the skin in the game leadership has in this company, since very few executives/board members have significant holdings in the company, but the CEO himself is a FactSet veteran, and knows his way around the company. On top of that, Bloomberg remains king for trading and the fixed income security market, and Reuters beats out FactSet here as well. If FactSet really wants to increase cash flow sources, the expansion into insurance and corp dev has to be successful.
Summary: FactSet has a lot of growth still left in its industry which is already fast-growing in and of itself, and it only has more potential at its current valuation. Earnings September 24th should be a massive beat due to investment banking demand and growth plus Hedge fund requirements for data and portfolio management hasn’t gone anywhere and has likely increased due to more market opportunities to buy-in.
Calls have shitty greeks, but if you're ballsy October 450s LOL, I'm holding shares
I’d say it’s a great long term investment, and it should at least be on your watchlist.
submitted by WannabeStonks69 to wallstreetbets [link] [comments]

Is liteforex a scam?

submitted by 008932648 to dividends [link] [comments]

Your Pre Market Brief for 07/16/2020

Pre Market Brief for Thursday July 16th 2020

You can subscribe to the daily 4:00 AM Pre Market Brief on The Twitter Link Here . Alerts in the tweets will direct you to the daily 4:00 AM Pre Market Brief in this sub.
Updated as of 4:45 AM EST
-----------------------------------------------
Stock Futures:
Wednesday 07/15/2020 News and Markets Recap:
Thursday July 16th 2020 Economic Calendar (All times are in EST)
(JOBLESS CLAIMS TODAY)
News Heading into Thursday July 16th 2020:
NOTE: I USUALLY (TRY TO) POST MANY OF THE MOST PROMISING, DRAMATIC, OR BAD NEWS OVERNIGHT STORIES THAT ARE LIKELY IMPORTANT TO THE MEMBERS OF THIS SUB AT THE TOP OF THIS LIST. PLEASE DO NOT YOLO THE VARIOUS TICKERS WITHOUT DOING RESEARCH! THE TIME STAMPS ON THESE MAY BE LATER THAN OTHERS ON THE WEB.
Upcoming Earnings:
Commodities:
COVID-19 Stats and News:
Macro Considerations:
Most Recent SEC Filings
Other
-----------------------------------------------
Morning Research and Trading Prep Tool Kit
Other Useful Resources:
The Ultimate Quick Resource For the Amateur Trader.
Subscribe to This Brief and the daily 4:00 AM Pre Market Brief on The Twitter Link Here . Alerts in the tweets will direct you to the daily brief in this sub
submitted by Cicero1982 to pennystocks [link] [comments]

USD Dividend

Hello,
From my understanding of how WST converts USD Dividend back to CAD before it reaches your account, will this have an effect in a taxable account?
For example, BAM pay a USD Dividend instead of CAD, will the Forex rate of that day be required during tax time?
Thanks,
A potential WST customer
submitted by PotentialWSTCustomer to Wealthsimple_Trade [link] [comments]

Wealthsimple Trade vs TD Direct Investing for Dividend-Paying Stocks on TSX

New to investing, currently have $5k in TDDI but looking to buy some stocks traded on TSX this upcoming week (BCE and T) for the dividend. I'm 22 years old and was looking to put $12.5k in BCE and $10k in T (my contribution limit is $28.5k) then once they issue the dividend, I will sell $7.5k in BCE and $5k in T ($5k remaining in both T and BCE), in which then I hope to invest into ENB at the end of Sept.
I'm wondering since these are 5 trades, it'd cost be about $50 with TDDI and $0 (I think?) with WST. Therefore, going forward I would just purchase stock traded at the TSX in my WST TFSA and stocks traded at the NYSE in my TDDI to avoid the WST forex fees.
Are there any flaws with my plans or something I have misunderstood?
submitted by Razardo to CanadianInvestor [link] [comments]

Why buy Canadian ETFs if they are consistently outperformed by US ETFs?

I'm curious about whether Canadian ETFs are worthwhile, as they have been a constant drag on my returns for the past 5 years. I consider the S&P 500 to be the benchmark for any stock returns. It feels like Canadian ETFs will crash every time the S&P 500 does, but we will never rise to new all time highs the same way. The S&P TSX composite has roughly stagnated in the last 15 years, but the S&P 500 has shown substantial gains in that time (and in all of its history).
It is true that past results should not be used to justify future returns, and that Canadian ETFs do have some advantages. Off the top of my head:
  1. No need to pay a forex fee or do Norbert's Gambit
  2. Generally higher dividend payout ratios (helps with total returns)
  3. No 15% dividend withholding tax that US ETFs have
Would it be worthwhile to drop Canadian stocks altogether to chase higher potential returns? Some thoughts:
  1. Lesser geographical diversification
  2. Increased currency risk due to USD:CAD FX
  3. I prefer the assets of the S&P 500 over the S&P TSX. VCN has heavy exposure to banks, oil & gas, and Shopify, which wouldn't be my ideal investment focus at this time.
submitted by 4333mhz to PersonalFinanceCanada [link] [comments]

Second thoughts on using TD Ameritrade as my brokerage for my Roth IRA. Should I switch to Fidelity?

I'm young and new to investing, hoping for some clarity because the more I learn, the more I get paralyzed, thus wasting time. I apologize if something similar has been asked before, but I can't seem answers to my questions.

Months ago, I decided I wanted to open a Roth IRA. I chose to use TDA as my brokerage because of the
I've maxed out my Roth IRA last year and this year, I've been trying to set up a 3-fund portfolio (Total Market, Total International, REIT). [Note: I decided on REIT rather than U.S. Bonds because I am young and feel like I can be aggressive right now and opt for something that pays dividends].
Anyway, I really liked FZROX and FZILX given the zero expense ratios and zero fees. I found out from TDA, however, that these are proprietary funds that can only be bought through Fidelity as a brokerage. I had already purchased FSNRX (a REIT).
My primary goal is to have a diverse portfolio that I can afford. After looking at analyses that people on the web have performed, I see that ER, fees, and other costs outside of purchasing index funds can take a toll in the long term. I hate to see large amounts of money going to fees if there is a cheaper option.
I know FZROX and FZILX don't technically track the indices, but their performance thus far seems comparable to Vanguard's VTSAX and VTIAXI realize that I'd have to open an account with Fidelity, pay a transfer fee with TDA, and wait before I could even use the funds to purchase any index funds through Fidelity.
Before I make any further fund purchases, I want to make sure I am informed.

My questions are as follows:
submitted by dennis-brodmann to personalfinance [link] [comments]

Switching institutions and investment strategies

I'm looking to get a little more tuned into investing. For the past several years I've been doing the Canadian Couch Potato strategy of e-series index funds with TD in both my RRSP and TFSA. Each of those accounts has about $30k in it, and I also have a LIRA with about $20k that is invested the same way. I recently moved my TFSA to Tangerine and put it in a savings account (partly to take advantage of a high-interest offer they had, but mostly because I'm planning on purchasing a detached home in the very near future and wanted to keep that money in cash). I already used $25k of my RRSP a few years ago for part of the downpayment on my current home, so the $30k I have in there now is really only going to be used for retirement. I also plan on making larger contributions to the RRSP going forward once I buy my next home (I've been skimping on my annual contributions recently to save for my next downpayment). Basically, that RRSP is going to get bigger (well...hopefully) and I will probably not be withdrawing that money for 30+ years until I retire, so I have a high tolerance for risk with that account. The TFSA is going to be emptied for the new house, but I'll probably build it back up slowly with low-moderate risk e-series index fund or ETF.
Lately I've been thinking of taking the RRSP out of TD and moving it to Questrade to dabble in ETFs and stocks. I know stocks aren't very highly recommended here, so maybe I'm just being naive. I was thinking of doing something like keeping half the RRSP (~$15k) in a high growth ETF like XGRO, and then the other half (~$15k) in US stocks that I can play around with...mostly for fun, but I'd be lying if I said I didn't have a couple friends who did pretty well with Tesla and other similar stocks recently and their enthusiasm about it is a bit infectious. As I contribute to the RRSP, I'll probably aim to keep that mix of half going to the ETF and half to stocks. I plan to keep all the stocks within my RRSP to avoid the withholding tax on US dividends, and also use Norbert's Gambit to avoid the forex fee on that initial conversion of $15k CAD to USD.
Additional context: I'm 31, married (dual income), make about $120k myself (I'm only investing my own money), no debt apart from mortgage, no kids (but could happen in the next couple years).
Am I crazy to do this? Should I just stick to index funds and / or ETFs? Maybe I'm being overzealous with the amount I want to potentially gamble away with stocks?
submitted by Superunknown_88 to PersonalFinanceCanada [link] [comments]

Wealthsimple Trade vs. TD Direct Investing for Dividend-Paying Stocks

New to investing, currently have $5k in TDDI but looking to buy some stocks traded on TSX this upcoming week (BCE and T) for the dividend. I'm 22 years old and was looking to put $12.5k in BCE and $10k in T (my contribution limit is $28.5k) then once they issue the dividend, I will sell $7.5k in BCE and $5k in T ($5k remaining in both T and BCE), in which then I hope to invest into ENB at the end of Sept.
I'm wondering since these are 5 trades, it'd cost be about $50 with TDDI and $0 (I think?) with WST. Therefore, going forward I would just purchase stock traded at the TSX in my WST TFSA and stocks traded at the NYSE in my TDDI to avoid the WST forex fees.
Are there any flaws with my plans or something I have misunderstood?
submitted by Razardo to PersonalFinanceCanada [link] [comments]

r/dividends is hiring mods! (Plus some very important announcements)

Good afternoon dividends,
A lot has been happening behind the scenes recently regarding the state of this subreddit, so I will skip any buildup and get right into it.
Firstly, I would like to officially welcome Jack Larkin (aka u/finance_student), who has officially joined the moderator team. I have brought him on to help turn Automoderator into more than just my copy-pasting default templates in a pattern that somehow works. So be nice, be kind, and wish him luck because I have no idea how to code.
The second order of business is that I am officially hiring not one, not two, but three additional moderators for dividends. Unlike Jack, these individuals will be active and participating members of the community who will be brought on to accomplish very specific tasks. The three positions are each very different, and listed below. Please read each one carefully.
  1. Old Reddit Ambassador: As many of you know, I have absolutely zero experience coding anything complicated. Unfortunately for me, Old Reddit does not care. Anyone who has worked with Old Reddit knows the stylesheet page is simply a blank text box responsive to (I think) CSS code. According to Reddit statistics, a large number of dividends userbase utilizes either Old Reddit, or 3rd party Reddit apps that are pulling data from Old Reddit. I am fully committed to ensuring you guys have just as positive of a user experience as those of us who use new Reddit, so I am recruiting an experienced Reddit coder to assist in this task. In essence, you would help me make dividends look good on Old Reddit and its third party apps. That's all this position is. You will serve as an ambassador to that community, and make sure our Old Reddit userw are having a great user experience. You will not need to handle the mod queue or work on automoderator.
  2. Wiki Writer: Another important goal of mine for this subreddit is the establishment of a wiki for any and all new dividend investors. It will be an introductory guide walking new investors through everything they need to know to get started, so that hopefully I can eliminate every single "Im X years old and don't know how to invest" post. Excellent writing skills will be required.
  3. Chat moderator: We are pleased to announce that /dividends is now live on Discord. Come join the conversation in our live chatroom! To facilitate the live chat, we have partnered with other finance related subreddits and are joining an already established and very active server. Our new server hosts the official chats for /algotrading, /forex, and the FXGears communities, and boasts more than 1600 online members. Our channels within the chat server are #dividend-investing and the #stocks-general / #stock-resources rooms, but of course you are encouraged to check out all subject matters hosted on the server. You can find links to the new chat in the top navigational bar and the sidebar. Individuals applying for this position would be responsible for overseeing the chat on these new channels. You would be granted moderator status here on the subreddit and would be granted permissions necessary to enforce the rules accross both platforms.
Those of you who wish to apply may send an application through modmail. Applications will be open until Tuesday September 1, when I will start contacting the finalists.
Edit: it was asked if mods were still allowed to participate in the community (apparently some subreddits want their mods to not interact with the subreddit unless they are acting as a mod.) I don't know what subreddits do that, but rest assured such a rule would not apply here. Any mods would still be free to post, comment, rate, etc. All the fun stuff. You can just think of being a mod as a side thing you do on the weekends or something if you want to. All I really need is people with the requisite skills who want to make the community better. You will get a custom flair of whatever you want, and you will get to help make this community a better place.

That concludes todays announcement. Until next time.
submitted by Firstclass30 to dividends [link] [comments]

Factset DD

Factset: How You can Invest in Hedge Funds’ Biggest Investment
Tl;dr FactSet is the most undervalued widespread SaaS/IT solution stock that exists
If any of you have relevant experience or are friends with people in Investment Banking/other high finance, you know that Factset is the lifeblood of their financial analysis toolkit if and when it’s not Bloomberg, which isn’t even publicly traded. Factset has been around since 1978 and it’s considered a staple like Bloomberg in many wealth management firms, and it offers some of the easiest to access and understandable financial data so many newer firms focused less on trading are switching to Factset because it has a lot of the same data Bloomberg offers for half the cost. When it comes to modern financial data, Factset outcompetes Reuters and arguably Bloomberg as well due to their API services which makes Factset much more preferable for quantitative divisions of banks/hedge funds as API integration with Python/R is the most important factor for vast data lakes of financial data, this suggests Factset will be much more prepared for programming making its way into traditional finance fields. According to Factset, their mission for data delivery is to: “Integrate the data you need with your applications, web portals, and statistical packages. Whether you need market, company, or alternative data, FactSet flexible data delivery services give you normalized data through APIs and a direct delivery of local copies of standard data feeds. Our unique symbology links and aggregates a variety of content sources to ensure consistency, transparency, and data integrity across your business. Build financial models and power customized applications with FactSet APIs in our developer portal”. Their technical focus for their data delivery system alone should make it stand out compared to Bloomberg, whose UI is far more outdated and complex on top of not being as technically developed as Factset’s. Factset is the key provider of buy-side portfolio analysis for IBs, Hedge funds, and Private Equity firms, and it’s making its way into non-quantitative hedge funds as well because quantitative portfolio management makes automation of risk management and the application of portfolio theory so much easier, and to top it off, Factset’s scenario analysis and simulation is unique in its class. Factset also is able to automate trades based on individual manager risk tolerance and ML optimization for Forex trading as well. Not only does Factset provide solutions for financial companies, they are branching out to all corporations now and providing quantitative analytics for them in the areas of “corporate development, M&A, strategy, treasury, financial planning and analysis, and investor relations workflows”. Factset will eventually in my opinion reach out to Insurance Risk Management a lot more in the future as that’s a huge industry which has yet to see much automation of risk management yet, and with the field wide open, Factset will be the first to take advantage without a shadow of a doubt. So let’s dig into the company’s financials now:
Their latest 8k filing reported the following:
Revenue increased 2.6%, or $9.6 million, to $374.1 million compared with $364.5 million for the same period in fiscal 2019. The increase is primarily due to higher sales of analytics, content and technology solutions (CTS) and wealth management solutions.
Annual Subscription Value (ASV) plus professional services was $1.52 billion at May 31, 2020, compared with $1.45 billion at May 31, 2019. The organic growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency movements, was 5.0%. The primary contributors to this growth rate were higher sales in FactSet's wealth and research workflow solutions and a price increase in the Company's international region
Adjusted operating margin improved to 35.5% compared with 34.0% in the prior year period primarily as a result of reduced employee-related operating expenses due to the coronavirus pandemic.
Diluted earnings per share (EPS) increased 11.0% to $2.63 compared with $2.37 for the same period in fiscal 2019.
Adjusted diluted EPS rose 9.2% to $2.86 compared with $2.62 in the prior year period primarily driven by an improvement in operating results.
The Company’s effective tax rate for the third quarter decreased to 15.0% compared with 18.6% a year ago, primarily due to an income tax expense in the prior year related to finalizing the Company's tax returns with no similar event for the three months ended May 31, 2020.
FactSet increased its quarterly dividend by $0.05 per share or 7% to $0.77 marking the fifteenth consecutive year the Company has increased dividends, highlighting its continued commitment to returning value to shareholders.
As you can see, there’s not much of a negative sign in sight here.
It makes sense considering how FactSet’s FCF has never slowed down
FactSet’s annual subscriptions and professional services have made its way to foreign and developing markets, and many of them are opting for FactSet’s cheaper services to reduce costs and still get copious amounts of data and models to work with.
Here’s what FactSet had to say regarding its competitive position within the market of providing financial data in its last 10k: “Despite competing products and services, we enjoy high barriers to entry and believe it would be difficult for another vendor to quickly replicate the extensive databases we currently offer. Through our in-depth analytics and client service, we believe we can offer clients a more comprehensive solution with one of the broadest sets of functionalities, through a desktop or mobile user interface or through a standardized or bespoke data feed.” And FactSet is confident that their ML services cannot be replaced by anybody else in the industry either: “In addition, our applications, including our client support and service offerings, are entrenched in the workflow of many financial professionals given the downloading functions and portfolio analysis/screening capabilities offered. We are entrusted with significant amounts of our clients' own proprietary data, including portfolio holdings. As a result, our products have become central to our clients’ investment analysis and decision-making.” (https://last10k.com/sec-filings/fds#link_fullReport), if you read the full report and compare it to the most recent 8K, you’ll find that the real expenses this quarter were far lower than expected by the last 10k as there was a lower than expected tax rate and a 3% increase in expected operating margin from the expected figure as well. The company also reports a 90% customer retention rate over 15 years, so you know that they’re not lying when they say the clients need them for all sorts of financial data whether it’s for M&A or wealth management and Equity analysis:
https://www.investopedia.com/terms/f/factset.asp

FactSet also has remarkably good cash conversion considering it’s a subscription based company, a company structure which usually takes on too much leverage. Speaking of leverage, FDS had taken on a lot of leverage in 2015:

So what’s that about? Why were FactSet’s long term debts at 0 and all of a sudden why’d the spike up? Well usually for a company that’s non-cyclical and has a well-established product (like FactSet) leverage can actually be good at amplifying returns, so FDS used this to their advantage and this was able to help the share’s price during 2015. Also, as you can see debt/ebitda is beginning a rapid decline anyway. This only adds to my theory that FactSet is trying to expand into new playing fields. FactSet obviously didn’t need the leverage to cover their normal costs, because they have always had consistently growing margins and revenue so the debt financing was only for the sake of financing growth. And this debt can be considered covered and paid off, considering the net income growth of 32% between 2018 and 2019 alone and the EPS growth of 33%

EBITDA has virtually been exponential for FactSet for a while because of the bang-for-buck for their well-known product, but now as FactSet ventures into algorithmic trading and corporate development the scope for growth is broadly expanded.

P/E has declined in the past 2 years, making it a great time to buy.

Increasing ROE despite lowering of leverage post 2016

Mountains of cash have been piling up in the coffers increasing chances of increased dividends for shareholders (imo dividend is too low right now, but increasing it will tempt more investors into it), and on top of that in the last 10k a large buyback expansion program was implemented for $210m worth of shares, which shows how confident they are in the company itself.

SGA expense/Gross profit has been declining despite expansion of offices
I’m a bit concerned about the skin in the game leadership has in this company, since very few executives/board members have significant holdings in the company, but the CEO himself is a FactSet veteran, and knows his way around the company. On top of that, Bloomberg remains king for trading and the fixed income security market, and Reuters beats out FactSet here as well. If FactSet really wants to increase cash flow sources, the expansion into insurance and corp dev has to be successful.
Summary: FactSet has a lot of growth still left in its industry which is already fast-growing in and of itself, and it only has more potential at its current valuation. Earnings September 24th should be a massive beat due to investment banking demand and growth plus Hedge fund requirements for data and portfolio management hasn’t gone anywhere and has likely increased due to more market opportunities to buy-in.
submitted by WannabeStonks69 to investing [link] [comments]

Trading from Ireland for tax efficiency

Hi, I am a UK resident (England) and i have been trading forex for a while. As part of my longterm plans I now need to form a registered company to trade from. I will be seeking formal tax advise but thought it would be good to start here as i've seen a lot of good ideas and advise on this site for a while.
I am now down to the following 2 options.
Option 1:
Open an IBC (with an offshore bank account)
Form a UK Limited company, I will use this to trade on behalf of the IBC as a consultant.
Withdraw funds to UK personal account (dividend etc.)
Option 2:
Form a Limited company in Ireland to trade from
Withdraw funds to England personal account (dividend etc.)
From the 2 options above I am Favouring Option 2, however I wanted to know what other peoples thoughts/experience were on this matter?
submitted by MSTNTX to u/MSTNTX [link] [comments]

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