Credit Suisse (CSGN.VX): dividend or shares

Dear Friends,

As proposed and accepted during the Shareholder meeting of Credit Suisse (CSGN.VX), we received today the letter asking us to choose between dividend in cash (0.7CHF/share, which are not taxed as it’s a capital distribution) or received X shares (at zero cost).

The # of new shares will be determined based on our position and the value that will be calculated as the average of 5 days closing value.

Based on my rough estimation, we should receive between 165-195 new shares.

Now what is the financial impact of these new shares:

  • it will reduced our purchase value by +/- 1.20 CHF or +/- 5%;
  • it will increase our 2016 dividend by +/- 120 CHF (considering 2015 distribution).

Now if we decide to take the dividend distribution of 0.7CHF, what is the financial impact:

  • it will give us a net cash gain of 3220 CHF,
  • Using our average dividend yield obtained in 2015, it will give less than 100 CHF in yield.
  • we can decide to invest this money at any time.

At first and before making this simulation, we would have taken the cash, but now, we realized that it’s probably better to take the new shares.

And you, what would you do if you were us?

In waiting your feedback, accept our best regards,

RA50

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Portfolio increase

Dear all,

Today, I am pleased to announce that we purchased an additional 350 shares of Swiss RE (SREN.VX), bringing our total position to 1475 shares.

As you know, we are big fans of purchases during the ex-dividend dates to benefits from the share drop. Today, we bought at a value of 88.2CHF vs. 95.5CHF (previous day closure) or at 7.6% discount.

This allow us to bring down our average buying price from 96.0CHF to 94.42CHF, a decrease of 1.6%

Considering the actual dividend distribution (7.25CHF), our 2016 dividend distribution from SREN.VX will be 10331.3CHF or a 32.6% increase vs. 2015!

I have already updated our portfolio.

Cheers, RA50

Tax declaration

Like spring and blooming season, it’s the tax declaration preparation. So as usual it’s getting all the bank and company paycheck and benefits statement ready, verifying that on fiscal statement all the dividend are included and preparing the consolidation in the electronic system provided by the Tax department.

 

I am expecting to have an increase of taxes as our dividend income was significantly higher than 2013, but at the same time we had to pay back some taxes from 2012 when we were not leaving in Switzerland, so I hope we can deduct this amount from our 2014 taxes. I am not sure, if we can deduct medical treatment that Ms. RA50 had during 2014, so it could help us as well.

 

We are bracing for impact, and crossing our finger not to have a bad surprise.


What about you, where do you stand on your 2014 taxes, good or bad news?

 

Cheers,

 

RA50


Why my god feeling is telling me that we are going to enter a turbulent time

Dear reader,

The world market have reached all time high during the last few weeks, so why I cannot take of my mind that we are going to enter turbulent time.

The DAX lost 1000 points in 7 days, the DOW is stagnating for the last 5 months, today the SMI lost 1.6% today. Is it the first sign of market correction that all of us are expecting with more or less credit and faith.

I am consolidating cash position to be ready for a market drop.

What are position now, do you have cash available to invest or are you fully invested?

Cheers,

RA50

Portfolio decrease

Dear all,

I would like to inform you that we sold the shares of our UBS Vitainvest 50 Swiss fund. We made 6.7% or 6’776 CHF of capital gain. If you remember, we bought just after that the massive drop of the Swiss market due to SNB decision to stop supporting the Swiss Franc.

We took this decision in order to have a cash position in case of future market drop, so our cash position is just above 100k.

This portfolio decrease is following our mix investment strategy (Mix investment strategy) and we have a +/- 6% gain selling limit which for this position we are just above.

What about you, any selling to have cash position for market drop?

Cheers, RA50