Tuesday, 2 October 2007

Dividend Season has Arrived

After the long weekend my post box was stuffed full of dividend statements and proxy voting materials. I organised most of my stock holdings to pay dividends into my credit union online savings account, where I let it accumulate until I prepay 12 months interest on my margin loans each June. The interest on my margin loans more than offsets the dividend income, but seeing all the dividends arrive in my bank account gives me a feel for what retirement might be like, living off investment income. In just the past week or so I've received the following:

19/09/2007 ASX DIVIDEND $ 183.00
19/09/2007 ANSELL DIVIDEND $ 67.20
21/09/2007 TELSTRA DIVIDEND $1,120.00
21/09/2007 QBE DIVIDEND $ 345.99
21/09/2007 TELSTRA DIVIDEND $ 280.00
27/09/2007 WOODSIDE DIVIDEND $ 107.80
27/09/2007 NEWCREST DIVIDEND $ 15.00
28/09/2007 SYMBION DIVIDEND $ 144.00
28/09/2007 APA DIVIDEND $ 327.95
28/09/2007 BHP BILLITON DIV $ 251.55
01/10/2007 FOSTERS DIVIDEND $ 487.63
01/10/2007 SUNCORP DIVIDEND $ 529.65

Where there are two dividends from the same company it's due to holding the same stock in two of my margin loan accounts. There are still a few dividends that are deposited into a different bank account or arrive via cheque - I'll slowly weed these out by sending in the paperwork required to have the dividends paid into the one account.

Filing of all this paperwork is quite simple - I just slip the dividend statements into next years tax folder and throw out all the proxy voting forms and an marketing materials that may be included (such as the wine selection from Fosters). When I was single I used to enter all the dividend information into quicken as it arrived (as well as all my other daily expenditure), but nowadays I'm either too busy with the family or too tired to make the effort required to keep quicken up to date. It makes life easier in the short term, but makes capital gains calculations a real pain at tax time if I've sold any shares (especially those where I've participated in a DRP for many years).

People who can’t purchase their own home can get easily mortgage loans from banks. This will help people to build their own home or purchase it. There are many banks now in competition and have different mortgage rates as well as terms and conditions. Many people also not satisfying with different interest rates so they go for mortgage refinancing in order to satisfy their financial needs. Banks are always looking to give loans those people who have sufficient resource to payback loan in future. The new insurance policy is an important factor while purchasing a home.


Copyright Enough Wealth 2007

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