Kool Keith
22 Feb 2018
Slight increase in the quarterly dividend, $0.19 Cax? I think is £0.1078 based on current exchange rate - yield 3.17% + any special(s) that right?TORONTO, CANADA -- Canadian General Investments, Limited ("CGI" or "the Company"
has declared a quarterly dividend of $0.19 per share payable on March 15, 2018 to common shareholders of record at the close of business on February 28, 2018 ("the Dividend". This dividend is designated as an "eligible dividend" for purposes of the Income Tax Act (Canada).
Kool Keith
14 Dec 2017
P.Bond - Pref Pref, Just a quick line as I've worked out my return on Premium Bonds for 2017, it works out at 1.29% tax free for the calendar year. Not to shabby for what is basically a 100% secure cash account.Odds, sorry interest rate for P.Bonds just gone up to average 1.4% so I'm about average.Still waiting for a knock on the door off 'Agent Million'. <<<<now that must be a good job.
Kool Keith
07 Dec 2017
Re: Watching & Waiting - KoolKeith Hi, good luck with the tree I'm not aloud near the tree unless it's to help pass the lights around the tree with the Mrs puts them in the 'correct' place!Frank was replying to an email I sent to mmainvestments, the £3 is what I'm currently underwater by but as was planned as a monthly investment I'm happy with that. Will be shifting into isa one way or another asap.Have fun with the tr
PrefInvestor1
07 Dec 2017
Re: Watching & Waiting - KoolKeith Hi Again KK,Clearly your response from "Frank" must have been a direct email or something ?. Not posted here. Is he something to do with CGI ?.Anyway mainly posting to say that I have finally bought in this morning at 1389.375, didnt quite reach my 1385 target but I decided to take it. US futures are up again today so if I leave it the price might go up again, I figured. Bought in my ISA so hopefully no dividend taxation for me !!.btw I see that they have just declared a Xmas special dividend. A massive 4c !!, why did they bother !. Details below:-[link] know how "Frank" managed only a £3 loss, probably he has held it for a while ?. I am £100 down having just bought in. But I wasnt suprised at that though, I could see that the spread was pretty large.Anyway off to put up the Xmas tree now !!.ATBPrefPS I dont go much on Bed & ISA, especially on stocks with a large spread as it costs you money. The commission is the least of your worries. In my opinion the best time to move things into your ISA is when they go XD. I have moved a few things in the past and what I have done is on the XD date when the price drops I buy the same size holding inside the ISA as I had outside (at the lower price). I then hold BOTH until the price recovers after the XD date, as it usually does. While the price is improving you are getting twice the gain. When the price has recovered I then sell the non-ISA investment to complete the move. I have moved 3 or 4 investments like that and made a profit each time. Clearly it is NOT guaranteed to work and were the price to fall then you would be making twice the loss. And of course you have to have sufficient funds available inside your ISA to be able to do this.Just an idea for you anyway....Do this at your own risk as I say it isnt guaranteed - but what is ?
Kool Keith
07 Dec 2017
Re: Watching & Waiting - KoolKeith Hi Pref, thank you for your replies and time spent looking into this.The reply was from my new mate Frank (as below)I have the w8-ben form completed for my Verizon shares (from vod) so sounds like that covers the requirement there, I'll be bed and isa the few shares I've got as can't (don't want) have taxable income when can avoid it. This is one of the reasons I hold so many P,Bonds ('won' £50 this month and daughter £25, she only holds £1100 so she did well).I treat my isa for my retirement as in planning on using income generated to live on along with a couple of buy to lets and then my pension(s) can accumulate and serve as a back up plan, as always need a back up plan! Therefore looking for a fund to add a few pennies to help pay for private education when youngest starts secondary school. Unfortunately state schools are not progressing, I'm already having to pay for a private tutor for my eldest daughter in A level physics and she got excellent GCSE's and attends what is deemed an outstanding school in the area.....sorry needed to get that off my chest as always believed shouldn't have to pay to get a good education especially if the child is willing to learn.Might look at fundsmith to save into for that, seems a safe(ish) / low risk place.I like CGI share holdings and performance so will bed and isa and add lump sums as and when, currently sitting on a £3 loss including trade costs will do the bed and isa when I get my next trading credit from iii In regards the original question, the reply was from :-Regards,Frank Frank FuernkranzSenior Vice-President, Operations,Chief Financial Officer & Secretary
PrefInvestor1
06 Dec 2017
Re: Watching & Waiting - KoolKeith Hi Again KK,Well I re-read the reply you got again over lunch and did a bit of googling on withholding tax and have a few additional comments to make.1. Re the response that you have received. On the face of it this appears to me to say three things:-a) That "capital gains" dividends wont be subject to canadian withholding tax but "regular dividends" will. And of course CGI pays some of each type each year.b) That the withholding tax rate should be 15%, but see note below.c) That in respect of UK taxation both types of dividends are likely to be treated just as "dividends from foreign companies" by HMRC - you need to check this with HMRC.Regarding withholding tax there are some forms that you need to have completed or you will be charged a higher rate of withholding tax, see link below:-[link] dont think that there is anything that can be done about the withholding tax issue. The canadians will just do whatever they do and you will receive the balance is my take - as usual could be wrong. SO IF YOU HAVENT DONE THOSE FORMS THEN YOU HAD BETTER OBTAIN COPIES AND RETURN THEM OR YOU WILL LOSE SOME OF YOUR DIVIDENDS.Regarding UK taxation of the dividends I think (but cannot be 100% sure) that had you held this investment in a tax shelter (ie an ISA or a SIPP) then there would have been no UK tax to pay. AGAIN TO BE 100% SURE OF THAT YOU NEED TO CHECK WITH HMRC.Holding them in an ISA is what I plan to do and as you NEVER have to declare dividends for things held in an ISA then Im pretty confident that the only issue that I will face is the withholding tax one. I have already completed and returned my W8-BEN form which is held by my broker. Not 100% sure if that covers me for canada though. But I note that my broker has the following note on their web page for this trust:-"* UK residents can qualify for a reduced rate of Canadian tax on dividends and interest. In order to claim this reduced rate on your behalf we require you to sign and return a W-8BEN form. W-8BEN."NOW THIS IS CLEARLY A COMPLEX AREA AND ANYTHING I SAY COULD WELL BE WRONG. SO PLEASE DO CONTACT HMRC TO OBTAIN THE NECESSARY GUIDANCE.I am still watching and waiting. The purchase price dropped twice this morning, first to 1398.25 and then 1393.25. I am hoping for 1385 but this may be too optimistic, but then again if US markets are down again today maybe I am in with a chance ?.ATBPref
PrefInvestor1
06 Dec 2017
Re: Watching & Waiting - KoolKeith Hi Again KK,Had to go back and look at stuff I had found before on CGI. In particular this dividend declaration:-[link] appears to state that canadian withholding tax will not be applied ?.Doesnt help on the HMRC tax front Im afraid though !!.ATBPref
PrefInvestor1
06 Dec 2017
Re: Watching & Waiting - KoolKeith Hi KK,Is this response from CGI ?. Anyway sounds like their view is much the same as mine. That the scheme described may be fine for Canadian residents/citizens but HMRC are likely to treat it all as just as "dividend" income.TO BE 100% SAFE YOU NEED TO CONTACT HMRC - ANYTHING I SAY COULD BE WRONG !!And yes it is possible that a canadian withholding tax on the dividends may apply also. Many countries impose a withholding tax on dividends I'm afraid.Sorry its all a hassle. Seems all forms of overseas investment suffers from multiple headwinds !!.ATBPref
Kool Keith
05 Dec 2017
Re: Watching & Waiting Hi PrefGot a reply regarding the tax on dividends, think will have to forward to my accountant as I'm not really much the wiser but thinking more along the lines I've misread (originally) and income will be tax as income! Any thoughts on the below before I do send it on? Thank you for your enquiry concerning Canadian General Investments, Limited (CGI). CGI pays two types of dividends, “taxable” dividends and capital gains dividends. In 2017, paid taxable dividends of $0.18 per common share on March 15, 2017 and June 15, 2017 and a capital gains dividends of $0.18 per common share on September 15, 2017. There is also a capital gains dividend of $0.18 per common share payable on December 15, 2017. Whereas the two taxable dividend payments would have been subject to Canadian withholding tax (which should have been the treaty rate of 15%), there is no withholding tax deducted on the payment of capital gains dividends to U.K. shareholders. Although CGI pays the above two types of dividends, which are subject to tax at different rates for Canadian shareholders, my understanding is that the U.K. does not have a distinction between types of dividends. As a result, for an individual in the U.K., both types of dividends would be taxed in the same manner, at the same rate, as dividends received from U.K. companies. Below, I have linked to the SA106 form, which is the self-assessment form to be used by individuals in the U.K. to report foreign income. All dividends received from CGI would be reported on page F2 under “Dividends from foreign companies”, together with tax withheld: [link] If you should have any questions, or require further information, please do not hesitate to contact me. I should note that I am not an expert in U.K. taxation, so you would be advised to confirm my information above with your tax advisor based on your own personal tax circumstances.
PrefInvestor1
04 Dec 2017
Watching & Waiting Because of what was going on in the US markets. The way things were going for a while there I thought that the price might come down a bit more than it actually did. Lowest I saw was 1392.5 with a selling price of 1343, quite a big spread. Had a limit order set to buy at 1385 for a while but without success.I suspect that the trust managers use the big discount to maintain the price even when the price of the holdings falls. At one point there Nvidia, the Trusts second largest holding @ 5%, dropped some 6% but the price of CGI didn’t change. That’s good and bad I guess, at least it provides some downside protection for holders.Today the purchase price jumped up first to 1408 and then 1413 so I wasn’t keen to buy at that price. I shall continue to watch and wait and see if developments in the US start to effect the price.ATBPref
tiltonboy
26 Nov 2017
Re: FAO Prefinvestor - Kool Keith CGI that should read
tiltonboy
26 Nov 2017
Re: FAO Prefinvestor - Kool Keith Stockdale put a note out on CHI this week, highlighting superior performance over1, 3, and 5 years, allied to a 3.3% yield. They contend that the discount should be narrower, and point out that the shares have traded at a premium in the past.As long as performance continues to be positive, I can live with the discount.
PrefInvestor1
26 Nov 2017
Re: FAO Prefinvestor - Kool Keith Hi Again KK,Regarding CGI dividends I had a look at their web site page on dividends here:-[link] which is looks like they do indeed pay some dividends as "capital gains" dividends. However I confess that I am unsure about the validity of "capital gains" dividends, it may be just fine in Canada - but what do HMRC think about it ?. If their rules are that they need to be treated as regular dividends then thats what you will need to do. If this is significant in terms of your dividend tax limit then you had better check this out with HMRC. I note that the reduction of the dividend tax allowance from £5,000 to £2,000 was NOT mentioned in the budget - but does that mean its not going to happen ?. Dont know.I also note that for some reason CGI pay some of their dividends as regular dividends and others as CGT dividends. So if investing outside of an ISA you will need to keep track of which is which.Regarding DRIP personally I think that the timing issue can be really quite a big deal. My broker says they will do the re-investment quote "between the 11th and 21st of the month". Well the price you will get is completely unpredictable then, and if you buy too high then you will be averaging up. Why would you want to do that ?. Saw quite a few people on the lloyds board smarting about the price they paid when their divis were re-invested. Dont get it myself. Yes bought 4 GOOG shares. With commission of £11.95 thats £3 a share !!!. Anyway both my AAPL & FB are in profit now (even after the 3% currency charge). GOOG getting there, bought at $1027 and $1040 now. Need $1070 to breakeven. Hoping for $1250 plus.CGI have been doing OK, tracking the price daily on IG & google finance. If theres a drop this week (xd day ?) then I will buy some.Budget was interesting. Thought it was good for housebuilders so bought back some PSN (had sold them all ahead of the budget) but the market thought otherwise. Reduction in stamp duty for FTB, increased Help To Buy, improvements to planning regs - only the threat to the land bank was a negative. And all that they are doing there is an enquiry, and they've done that twice before and never changed anything.Re cash. Ours just sits in a savings account just getting ~1%. Interesting idea premium bonds. I'll talk to the wife about it.ATBPref
Kool Keith
18 Nov 2017
Re: FAO Prefinvestor - Kool Keith I've noticed you've being trimming your UK holdings from other boards I've seen you on, good luck I'm currently holding on, I can't time the markets. Dividends from CGI are showing as paid as capital gains and not income tax so shouldn't' make up any of the 5k or soon to be 2k dividend allowance as far as I can see. Please correct me if you think I'm wrong.Regarding the drip I hear what you're saying, but as I'm with iii then I get X amount of credit from the quarterly fee so to make me feel better I'm in the 'use or lose it' bracket. As for dividend reinvestment I've reinvest in the past albeit blindly but as my holdings are now more substantial (for me) I'm starting to look at cancelling these and like you, invest when I see an opportunity etc. or even more the dividends out of my UK holdings and look further afield.Goog think I read you got about 4 shares for your money, frightening isn't it.....share spilt would help.Do you hold your cash anywhere exciting as to get some sort of return or just hold in an account ready to pounce? I hold any cash (that's outside of isa) in premium bonds, I live in hope, this time next year pref this time next year....
PrefInvestor1
18 Nov 2017
Re: FAO Prefinvestor - Kool Keith Hi Again KK,Havent been to this board for a while so only just caught up on your 1st Nov post. Been busy selling quite a few of my FTSE stocks, taking profits and culling losers. Bit worried about the very poor market sentiment of late and am concerned that the FTSE may continue its current downtrend, or worse..... And what will the budget bring I wonder ?.Anyway not sure where you got the stuff from about dividend outside an ISA being free from tax. That's true as long as your TOTAL dividend income outside an ISA is less than the £5,000 dividend tax limit (probably soon to be reduced to £2,000) but not otherwise - that's as I understand it anyway. If in any doubt you'd really better check that.Regarding the ISA'ability of an investment. My broker has a little box at the top right of each stocks factsheet which lets you know which sort of account you can invest in. See the example for XLK below:-[link] I couldnt buy an ETF I bought some GOOG instead. Not going that great but early days I guess.I never do the regular savings thing or DRIP or anything like that. My broker makes a small charge for that about £1/£1.50 a time but the big problem that I have with it is that you have no idea when they are going to make the purchase - and hence may buy at a really poor price. I guess if your doing the "pound cost averaging" thing and just investing £100 a month or something then it wouldnt be as big deal. Personally I always save up the dividends across all my investments and then buy an economic quantity (taking account of stamp duty & commission) at what I consider to be a good price. But good luck with it anyway.BOE rate hike turned out to be a non-event. The the fall in the pound was very unexpected. Had expected it to affect some of my pref prices, but it hasnt - glad to say they are still going up !!.Anyway I now have a fair wedge of cash and am looking around for somewhere to invest it, ideally an overseas IT which is why Im here. I havent bought any of these yet. I see they have an XD day coming up on the 28/11 and I might wait for that and see if the price drops a bit !!.ATBPref
