Share Picks 2020

Wombatman

I got paid a dividend of €140 today.
DeGiro deducted €36.91 dividend tax.

German stock so 26% according to map posted earlier.

Bob24

Wombatman wrote: »

I got paid a dividend of €140 today.
DeGiro deducted €36.91 dividend tax.

German stock so 26% according to map posted earlier.

The map shows the rate German tax residents have to pay. What DEGIRO deduced is the German withholding tax, which might or might not be a similar percentage but is a different thing.

If it was U.K. shares there would be no withholding tax so DEGIRO wouldn’t have deduced anything, but it doesn’t mean U.K. tax residents are never paying any tax on dividends.

littlemac1980

littlemac1980 wrote: »

Hope you caught the spike in KTOV this morning! Still going strong.

KTOV up 25% now and still climbing lol

crushproof

littlemac1980 wrote: »

KTOV up 25% now and still climbing lol

Sigh sold out at 40c last week. Took my profits, didn't expect to crawl up again!

riddles

To invest in shell oil there is shell A B nsy or shell ams or shell lse - which would be the standard share price to invest in?

voluntary

Wombatman wrote: »

I got paid a dividend of €140 today.
DeGiro deducted €36.91 dividend tax.

German stock so 26% according to map posted earlier.

Now, because Ireland and Germany signed a double taxation agreement, you can deduct this amount from your Irish tax liability. If there was no double taxation agreement between these two countries you'd be liable for the full tax amount in both countries!

voluntary

Bob24 wrote: »

Yep than map shows how crazy it is here.

Not to mention that a good number of countries have special fiscal vehicles for small and medium individual investors meaning the tax rates listed on the map you posted aren’t even due for those investors. I am not a tax specialist but thinking of or closed large neighbours I believe both the British and the French can reduce/avoid the base tax rates on dividends respectively though ISA and PEA special investment accounts.

Sadly we have nothing like this here ...

On top of a rip off dividend tax Ireland offers one of the highest personal Capital Gains tax which is 33% (increased from 20% pre 2008 crash).

If you invest some more serious amount of money then you either setup some financial vehicle or change your tax residency to non-Irish. Only plebs like us pay these ridiculously high bribes.

littlemac1980

crushproof wrote: »

Sigh sold out at 40c last week. Took my profits, didn't expect to crawl up again!

Profit is profit!

I sold earlier not at the peak but made some decent return.

If it swings back under .32 for external/macro factors I’ll prob try repeat the cycle.

littlemac1980

voluntary wrote: »

On top of a rip off dividend tax Ireland offers one of the highest personal Capital Gains tax which is 33% (increased from 20% pre 2008 crash).

If you invest some more serious amount of money then you either setup some financial vehicle or change your tax residency to non-Irish. Only plebs like us pay these ridiculously high bribes.

I’m current resident in Canada. By way of comparison here’s how they deal with CGT (from what I could quickly find online):

[url] https://www.wealthsimple.com/en-ca/learn/capital-gains-tax-canada[/url]

Essentially 50% of your gain has to be included with your Income Tax return at the end of the year (everyone has to file their own IT returns annually)

So you only pay your personal income tax rate on 50% of the gain. On average (very broadly speaking) IT is about 20% (once you apply allowances etc). So CGT is effectively about 10% of the gain on stocks for the average person.

Also, looks like u can hold capital losses indefinitely to offset future gains.

Yep Ireland screws the Irish.

Bob24

Bob24 wrote: »

Another side effect of zero and negative interest rates which central bankers will like a lot less is that besides stocks these are therefore pushing people towards things like gold (on the safe side) and Bitcoin (on the more adventurous side). Or a mix of gold and stocks: Franco Nevada is a gold streaming company I like whose stock has done rather well this year: https://finance.yahoo.com/quote/FNV/

Coming back do Franco Nevada, it is doing incredibly well and reached a new all times high today. It is now 20% higher than it was before the March market crash. I almost feel uncomfortable buying more at that price

voluntary

Ireland screws the Irish because nobody complains. Just me and maybe a few others.

I think the reason may be that investing in stocks and other securities by regular Joe was nearly no existent 10 years ago in Ireland due to high fees and some other reasons. Investing was nearly reserved for professionals. Today, when trading is available and affordable to anyone through portals like eg Degiro, I'd expect people will start seeing the injustice and may start putting more political pressure on lifting some weight from their backs.

Mad_maxx

riddles wrote: »

To invest in shell oil there is shell A B nsy or shell ams or shell lse - which would be the standard share price to invest in?

Your best invest in the B class shares on the LSE

The B class shares on the Amsterdam exchange are very thinly traded by comparison

B class shares have a more favourable tax policy

The Phantom Jipper

Not to flog a dead horse with this topic, but I have some dividend income that has the 15% US withholding tax deducted and then a further 20% Irish encashment tax taken off. Are ye saying there's more to be paid on this? I'd deluded myself into thinking that was me fully paid up.

whatever76

The Phantom Jipper wrote: »

Not to flog a dead horse with this topic, but I have some dividend income that has the 15% US withholding tax deducted and then a further 20% Irish encashment tax taken off. Are ye saying there's more to be paid on this? I'd deluded myself into thinking that was me fully paid up.

Prob more experts than me on here but I would say Yes - you need to declare this as Income in Form 11 when you doing you 2020 tax return next year and when you sell pay CGT if they make profit.

Browney7

voluntary wrote: »

Now, because Ireland and Germany signed a double taxation agreement, you can deduct this amount from your Irish tax liability. If there was no double taxation agreement between these two countries you'd be liable for the full tax amount in both countries!

And you don't even get a full credit because the revenue form only allows a certain % of witholding tax consistent with the double taxation treaty. Degiro deduct more because they don't adjust for your residency so you have to claim the difference between the rate degiro deduct and the tax treaty rate from the German authorities! Dividends only really make sense for people on the lower rate of tax

Bob24

The Phantom Jipper wrote: »

Not to flog a dead horse with this topic, but I have some dividend income that has the 15% US withholding tax deducted and then a further 20% Irish encashment tax taken off. Are ye saying there's more to be paid on this? I'd deluded myself into thinking that was me fully paid up.

Depends on your tax situation, but quite possibly there is more.

Basically dividends are taxed as regular income. So for example of you are a PAYE worker on the 40% tax band you owe 51% of the dividend you receive as per the map posted earlier.

And yes ... this is a total rip-off.

Bob24

Browney7 wrote: »

And you don't even get a full credit because the revenue form only allows a certain % of witholding tax consistent with the double taxation treaty. Degiro deduct more because they don't adjust for your residency so you have to claim the difference between the rate degiro deduct and the tax treaty rate from the German authorities! Dividends only really make sense for people on the lower rate of tax

I didn't know about German dividends, but then it seems to be a recurring issue with Degiro across multiple countries.

There is the same thing with French dividends: DEGIRO are taking a 30% withholding tax which is the default rate for French tax residents and tax residents of "non-cooperative" tax jurisdictions; whereas the actual rate for tax residents of "cooperative" foreign tax jurisdictions should be 12,80% (Ireland being included in that list). The problem is that then of course Revenue will only allow to deduce 12.80% from Irish tax liabilities as this is what you were supposed to pay and it is not Revenue's problem if your broker applied another higher rate. Some brokers do apply the correct withholding tax, so it is possible (although it probably means more paperwork with French authorities for the broker which is not something DEGIRO wants to bother with).

To be honest, international dividends taxation is a total mess as every country possibly has multiple different rates of withholding tax, it is not always easy to pay the correct one, and then your own tax authorities want their share as well and what they allow you do deduce from your local liabilities doesn't always much what you paid in the foreign jurisdiction. It would be much easier if every country was like the UK which doesn't apply any withholding tax.

bfa1509

voluntary wrote: »

Ireland screws the Irish because nobody complains. Just me and maybe a few others.

I think the reason may be that investing in stocks and other securities by regular Joe was nearly no existent 10 years ago in Ireland due to high fees and some other reasons. Investing was nearly reserved for professionals. Today, when trading is available and affordable to anyone through portals like eg Degiro, I'd expect people will start seeing the injustice and may start putting more political pressure on lifting some weight from their backs.

I understand the adjustment in stock price as it goes ex-dividend but I never thought of selling and then buying back to avoid getting the dividend altogether. How has this worked out for you in the past? This interests me greatly.

I think the reason a lot of people don't notice the adjustment is because the stock price is rising and falling naturally anyway. Surely you also risk missing out on small gains by selling and buying ex dividend? What if the share price jumps 3-4% after the ex-dividend date? Probably worth the risk anyway.

BK92

voluntary wrote: »

On top of a rip off dividend tax Ireland offers one of the highest personal Capital Gains tax which is 33% (increased from 20% pre 2008 crash).

If you invest some more serious amount of money then you either setup some financial vehicle or change your tax residency to non-Irish. Only plebs like us pay these ridiculously high bribes.

I'm not an expert in taxation so I'm struggling to see why our marginal rate dividends tax is an eye-watering 51% as per the map. Ireland doesn't have a significant small investor culture, what's the logic in heavily taxing the few euros Joe Soap might get in Computershare cheques in the post ?

I know this is Ireland, but surely it just can't be 'because we can get away with it'. Would it not make more sense for our government to facilitate small investors to reduce the cost of/reliance on the measly state pension ?

Jim2007

bfa1509 wrote: »

I understand the adjustment in stock price as it goes ex-dividend but I never thought of selling and then buying back to avoid getting the dividend altogether. How has this worked out for you in the past? This interests me greatly.

By doing so I would expect you might also run into CGT issues if the stock did well during the period.

Jim2007

BK92 wrote: »

I know this is Ireland, but surely it just can't be 'because we can get away with it'. Would it not make more sense for our government to facilitate small investors to reduce the cost of/reliance on the measly state pension ?

But Irish policy, in line with most of former British Empire, is to encourage wealth growth through property ownership, ignoring the fact that it has not gone too well since the Industrial revolution!

It would take a major paradigm shift to change that culture.

Here in Switzerland we have the opposite situation, owning a property is the last thing a taxpayer will want to do because you will get absolutely hammered. Where as equity investing is for most of us a tax free exercise.

timetogo1

BK92 wrote: »

I'm not an expert in taxation so I'm struggling to see why our marginal rate dividends tax is an eye-watering 51% as per the map. Ireland doesn't have a significant small investor culture, what's the logic in heavily taxing the few euros Joe Soap might get in Computershare cheques in the post ?

I thought you answered your own question there. There haven't been that many investors so the majority of politicians don't care if they're screwed.
Look at the the €1270 tax free allowance in the sale of shares. That number hasn't been updated since the early 90s.

Can you see that changing with the populist policies our politicians take. Share holders are probably assumed to be millionaires by the masses. If you said you were sorting out the taxes the populist parties would be all over it complaining.

Bob24

BK92 wrote: »

Would it not make more sense for our government to facilitate small investors to reduce the cost of/reliance on the measly state pension ?

I think the answer you will get to this from politicians is that this is covered by tax-free pension contributions (which are invested in the stock market through funds).

To be clear I don’t think it is justifying our confiscatory level of taxation for small investors who want to do other investments and manage them directly, but I think it is the answer you will get if you mention pensions.

Mad_maxx

timetogo1 wrote: »

I thought you answered your own question there. There haven't been that many investors so the majority of politicians don't care if they're screwed.
Look at the the €1270 tax free allowance in the sale of shares. That number hasn't been updated since the early 90s.

Can you see that changing with the populist policies our politicians take. Share holders are probably assumed to be millionaires by the masses. If you said you were sorting out the taxes the populist parties would be all over it complaining.

This

Shedite27

Bob24 wrote: »

I think the answer you will get to this from politicians is that this is covered by tax-free pension contributions (which are invested in the stock market through funds).

To be clear I don’t think it is justifying our confiscatory level of taxation for small investors who want to do other investments and manage them directly, but I think it is the answer you will get if you mention pensions.

I can see the argument, but a lot would see it as a tax break for those that have more disposable income over those who don't have anything to save.

Augeo

Augeo wrote: »

https://pharmafield.co.uk/pharma_news/mhra_fast_track_nod_for_uk_pharma_companys_covid-19_study/

4d Pharma PLC

currently under 60p, was £1 prior to a placing in Feb that was at 50p, RNS yesterday regarding Phase II study in COVID-19.

Company is funded for the short term after the recent placing, they are working on a treatment not a vaccine........ as folk likely know, a vaccine being developed isn't at all guaranteed.

I'd put this one as low risk but potential high reward, and it'll be sooner rather then later

Article on the BBC about Covid treatment trials........ 23Apr20

https://www.bbc.com/news/uk-england-leeds-52397263

"..... Dr Dinesh Saralaya, a consultant respiratory physician in Bradford, said: "There are times when we feel completely helpless, when we see the patient deteriorating before our eyes.

"It's so crucial to do these trials so that we can actually find a treatment for these patients..."


The Doctor mentioned is afaik a key member of the 4d trial ....

https://www.europeanpharmaceuticalreview.com/news/117522/4d-pharma-to-initiate-phase-ii-study-of-mrx-4dp0004-to-treat-covid-19/

"....... The study’s lead investigator, Dr Dinesh Saralaya commented: “The COVID-19 pandemic presents an unprecedented challenge to our healthcare systems and we desperately require the rapid development of new therapies to ease the burden on our intensive care units. Given the scale and urgency of the situation it is vitally important that we generate evidence to support the use of new candidates as quickly as possible, before these can be rolled out to patients who need them.”

He added: “As well as its appropriate mechanism of action, the highly favourable safety profile of MRx-4DP0004 makes it a particularly attractive candidate for COVID-19 patients and may potentially allow us to prevent or delay their progression to requiring ventilation and intensive care.”

The market seems oblivious to 4d pharma likely providing one of the 4 drugs mentioned in the BBC article.

Well oblivious ish I suppose, it's 72p now.

littlevillage

Augeo wrote: »

Article on the BBC about Covid treatment trials........ 23Apr20

https://www.bbc.com/news/uk-england-leeds-52397263

"..... Dr Dinesh Saralaya, a consultant respiratory physician in Bradford, said: "There are times when we feel completely helpless, when we see the patient deteriorating before our eyes.

"It's so crucial to do these trials so that we can actually find a treatment for these patients..."


The Doctor mentioned is afaik a key member of the 4d trial ....

https://www.europeanpharmaceuticalreview.com/news/117522/4d-pharma-to-initiate-phase-ii-study-of-mrx-4dp0004-to-treat-covid-19/

"....... The study’s lead investigator, Dr Dinesh Saralaya commented: “The COVID-19 pandemic presents an unprecedented challenge to our healthcare systems and we desperately require the rapid development of new therapies to ease the burden on our intensive care units. Given the scale and urgency of the situation it is vitally important that we generate evidence to support the use of new candidates as quickly as possible, before these can be rolled out to patients who need them.”

He added: “As well as its appropriate mechanism of action, the highly favourable safety profile of MRx-4DP0004 makes it a particularly attractive candidate for COVID-19 patients and may potentially allow us to prevent or delay their progression to requiring ventilation and intensive care.”

The market seems oblivious to 4d pharma likely providing one of the 4 drugs mentioned in the BBC article.

Well oblivious ish I suppose, it's 72p now.

Very small company, GBX77m Market Cap. and its SP is actually down 5% today. Are you suggesting that this might be a good entry point ...or is it the old case of buy the rumour, sell the news ?? (today being the news day)

littlevillage

littlevillage wrote: »

Very small company, GBX77m Market Cap. and its SP is actually down 5% today. Are you suggesting that this might be a good entry point ...or is it the old case of buy the rumour, sell the news ?? (today being the news day)

I do think this is a great entry point.
Today isn't a news day, there's no RNS......... the articles linked are from weeks ago.
The last RNS that announced the Phase II study in COVID-19 was on 20th April....... SP on COB on Fri 17th was under 40p.

I think there's a lot of upside here regardless of Covid19 but if the drug is seen to be beneficial in the trial there'll be lots of upside in the near future.

Augeo

Augeo wrote: »

..............

The market seems oblivious to 4d pharma likely providing one of the 4 drugs mentioned in the BBC article..............

I said likely earlier as I had no link that actually specified it.........MRx-4DP0004 is branded AdisInsight, mentioned here ....... at 1 min .
https://www.youtube.com/watch?v=J_8G3xm-kGs

littlemac1980

littlemac1980 wrote: »

Profit is profit!

I sold earlier not at the peak but made some decent return.

If it swings back under .32 for external/macro factors I’ll prob try repeat the cycle.

Well KTOV swing wildly back to .34 this morning so I picked em up again to see what happens.