Thanks Omega. Very clear explanation. Cheers
Printable View
Another day, another related article.
http://www.nzherald.co.nz/business/n...ectid=10910165
just to add my 28% [tax humour]
Companies can impute dividends up to 28%, representing the tax they have paid. Hence dividing by 0.72 to gross up for this extra benifit.
A company must withhold tax at 33% (less ICs) so the will withhold 5% withholding tax as well - unless you have a withholding tax certificate.
Note IC represent NZ tax paid so a company with NZ operations is expected to fully impute but a company with large profits overseas (FBu, skc, fph) will struggle so may only partially impute.
Edit: worked example
Fully imputed
7.2 Cent dividend
2.8 Fully imputed
10. Cent gross income
-2.8. IC tax credit
-0.5. RWT tax
6.7. Cent cash in hand from dividend
No imputation
7.2. Cent div with no iC
-2.4. RWT tax
4.8. Cent cash in hand from dividend
Cousin greed has always been my favourite, however hopefully irrational uncle Mr Market doesn't lock greed out of the house for bringing too much positive news.
Its getting a bit off topic. But one last thing, when will we see 'Sparkys magic managed fund' then? I assume it will have a good portion of CNU ;)
Maybe everyone except those holding it (CNU) for the gross dividend percentage should be banned from owning CNU (down 5cps this morning).
That way there would be some desirable stability and the game players could concentrate on more logical targets like FBU....
"Chorus will release its full year results, for the twelve months ended 30 June 2013, prior to market opening on Monday 26 August 2013. A briefing will be held at 10am (NZ time) and webcast live via www.chorus.co.nz/webcast."
Does anyone have any thoughts as to what we could be in for? Any particular number ranges that would be deemed as negative/positive?
Looks good to me STC , I think the analyst range was 141/165 mio so above all of those @ 171 mio.Feels to me like some of the negativity is going out of this stock, solid dividends will underpin this as well imo.
It's a better report than TEL, higher dividend and fully imputed. A just reward for all the bureaucratic socialist sniping from the idiot Commerce Commission.
Yeah I must say I am surprised the report didn't push them through the $3 resistance level in quick order this morning. It's a very nice divvy.
Could even be something as simple as all the folks that previously bought in at $3 or above are seeing that as an approximate number to sell at and get their money out without too much of a loss. That selling pressure, in turn, is enough to keep the ceiling in place. $3 is a major resistance/support line.
stock went down because capex forecasts for FY14 were higher than analysts were expecting. On top of that each fibre install is costing ca $1600 vs forecast average of $900-$1100.
Ah I see the reason for the slight dip now. Morningstar have reaffirmed their accumulate rating and $3.60 valuation.
I'll take the dividend :-)
Look at the gross dividend yield ratio.
It appears that analysts haven't read the CEO's statement that some streets only take $1,000 to cable lay and that they have done the difficult central city streets first and will do easier stuff from now on.
But they ("analysts") don't believe that. In other words they believe the CEO is deliberately telling lies.
He would have to have a very short term horizon to do that, he would be out on his ear about a year later. I don't believe he would do that. Its not a Ponzi game.
A bit of light reading for the public;
http://www.nzherald.co.nz/business/n...ectid=11118623
:-S
Totally agree, I think regardless of the boat rocking by any other groups, the short-term pain of higher copper prices is a really good strategy to move more people faster onto fiber for the long term gain.
I think they're playing the smarter game, and likely labour wont get in next election so they'll have a few years to ride it out.
A happy holder here.
After reading Barton's (article referenced by Mista Trix above) I have to say (as an economist) that it's full of sloppy, misleading and incorrect economics put out by self serving pressure groups like TUANZ.
He says no one can get onto or use glass fibre now. Wrong.
He cries oceans of crocodile tears for rural users supposedly subsidizing urban users. The numbers actually involved are so very thin, its not a meaningful argument.
He obfuscates and disputes the need for Chorus to get a meaningful return on its investment and to be able to pay its loans back.
Pathetic. He's stool pigeon in the pocket of TUANZ.
I think there may be some selling in Chorus by those not really in the know, especially when you get reporting like the above could create an good entry point.
"Chorus are doing the braodband rollout and the workers are on strike - sell sell sell"
See also sub standard, one sided reporting by Chris Barton in the Herald.
http://www.nzherald.co.nz/business/n...ectid=11118623
As Jay says, reporting like this could create buying opportunities.
just to clarify, it's not contractors who have downed tools, it is sub contractors. They will get paid - transfeild just reported a good profit apparently - be worried only if their share price goes down - and even then, it will only temporary glitch while they sign up a new contractor.
Agree, just the general public will only hear Broadband workers on strike can't be good for Chorus rolling out broadband, put 2 + 2 together and get 3
To correct my post, Transfeild just announced a huge loss ($250m) but since then its shareprice has increased 50% (go figure) so there must be something positive happening.
http://www.nbr.co.nz/article/ufb-con...port-ck-145425
Sell order in at $2.90 by the looks. From memory I think the partial dividend is this month. Time to add some more CNU to the portfolio
Dividend reinvestment plan
http://www.chorus.co.nz/dividend-information
From the PDF it says the rate at which the dividend will be invested is a five day volume weighed average price prior to the ex date minus a 3% discount.
Is this really a good deal though? At first it would seem so, however when you look at it,
15.5 cents ÷ 296 (current shareprice) makes for a 5% return. Hence I can foresee dividend strippers possibly bidding the price up at least 3% in the days leading up to the date, if not more. If it was more, you'd actually end up paying a premium for these shares.
The clincher of course being the zero brokerage fees. Hence if you're wanting cheap shares then this isn't the deal it might seem, but if you want to build your holding then it's great (due to the lack of brokerage).
NBT
Your post is not correct. Following is an extract from DRP document:
P (price) is the volume weighted average sale price (expressed in cents and decimals of cents), for a Share, calculated on all price setting trades of Shares which took place through the NZX Main Board over a period of five Business Days commencing on the Ex Date (less a discount (if any) at the discretion of the Board, as contemplated by paragraph 12(a)(i) of these Terms and Conditions).
Aha! Thank you. I was wondering if there was something I was overlooking. So then given the fact the price is based on five days AFTER the ex date when the price should fall then this is actually a great deal!
Another good reason to own CNU I guess.
Disc; happily holding CNU and soon some more ;)
... look's like a solid deal for sure. Onwards and upwards CNU...
Good God, "The Coalition for Fair Internet Pricing".
When I read the Stuff article it seems like there is some pretty hairy logic involved.
"The $600m figure used by the coalition is derived from the difference between the commission's proposals and those of Adams."
To tag this as a $600 M tax is an interesting way to characterise it to say the least.
Here's what i just read on Stuff:
"Chorus big winner in internet reform: Coalition
Hamish Rutherford
Kiwi broadband users face being taxed at least $600 million by the Government, with all proceeds going to privately owned Chorus, a broad coalition says."
Look at the make up of this "Coalition". It is being led publicly by Consumer New Zealand chief executive Sue Chetwin, InternetNZ chief executive Jordan Carter and Paul Brislen, chief executive of the Telecommunications Users Association of New Zealand (Tuanz).
Other members include the Federation of Maori Authorities, Grey Power, the the New Zealand Union of Students' Associations, Rural Women and the Unite union.
It is all just so political.
What on earth is Farrar and Hooton's angle. It seems to me that the flaw in Coalitions argument is in regarding the system as two systems. The "old" and the "New" when in fact it is just one system being upgraded. Like it or not the consumer pays one way or another. Whether it is by Chorus' charges or Gov't (taxpayer) subsidy.
Unfortunately the latter is not as tangible to the consumer
Betcha Sue Chetwin is a card carrying member of the Labour Party like the scatty Rod Oram, the 'Orrible Oram.
I can't help sniggering whenever I see Sue's funny face and all that hair on TV. As for Rod Oram - does any paper actually publish his drivel any more.
Actually the smart, socialist robber baron approach perfected by Hugo Chavez of Venezuela and Cristina Fernandez of Argentina would be to let Chorus pay for and finish the UFB glass fibre and then seize it without compensation. By seizing it now or just after a Labour victory next year they are going off half cock and run the risk of not only totally discouraging private investment but also of being left with a half completed UFB that no-one else would touch so that NZ's copper network has to compete against all the other countries with glass fibre. No contest. NZ loses heavily. TUANZ is left with a copper network for the next 20 or 30 years.
I know very little about CNUT but heck this headline in NBR is pretty dramatic
. PM says chance Chorus could go broke; shareholders shrug
http://www.nbr.co.nz/opinion/pm-says...lders-shrug-ck
It is making me nervous, CNU is one of my biggest investments. It is becoming very political, hopefully the Americas cup will get this group out of the news. CNU hasn't said it will go broke if the commerce commission ruling goes through, it has said that rolling out the UFB network might be a waste of time if copper is way cheaper as no one will switch to fibre. Thinking about reducing my holdings, where is the calming influence of a clown when you need one. I guess if nothing else John Key is likely to stick to his guns and support CNU, as a failure of the UFB network is a failure of national party policy.
The cheek and Goebbels type propaganda of the TUANZ mob knows no bounds. Its just that they have transferred most of their evisceral irrational hatred from Telecom to Chorus.
I'll buy them off you if they go down to $2.28 again Aaron :-)
No government, left or right, is going to let the UFB network go under-utilized.
CNU, and it's previous incarnation as part of TEL, has always been (and always likely to be) political. How anyone can see otherwise is beyond the hog.
It is the nature of big telcos in a pseudo-free market, where lobbying, influence and politics all impact fundamentally on outcomes.
CNU appears to have under-bid on the UFB contract. Whether they did so on purpose, speculating that they could rely on market intervention from Key, Joyce and co, to achieve desired outcomes, or just didn't do their homework (or some combination of the two) is up for discussion. All three possibilities are perfectly reasonable given the parties involved.
Does anyone here recall TEL, under Gattung, when facing regulation, writing to the government of the day, sharply reminding our politicians that a good part of their retirement has its prosperity connected with the fortunes of TEL.
Thanks Chad I'll take that article to mean the argument against cheap copper is reasonably compelling even to the likes of Vodaphone and the School Board of Trustees.
Yes Hog CNU will always be affected by politics, its just that it is usually not front page news with a coalition of groups ganging up to exert some pressure on the govt regarding the regulated price to access the copper network. Although that said its good to see people taking an interest in what is happening in NZ in general even if I don't agree and the main reason I don't agree is my shareholding in CNU.
This backgrounder is later and fuller.
http://www.nzherald.co.nz/business/n...ectid=11125498
As it says further down when the other side of the picture is explained "the coalition"tends to fall apart.
Too much uncertainty and exposure to political interference and risk/reward doesn't stack up for me. I've taken my profit and I'm out. Good luck to holders.
This is brilliant timing not long before the partial dividend. Same old story, people looking at the story in the news, panicking and selling thinking Chorus is about to go broke because John Key had to say something to counter a 'self interest groups' claims. When in reality Chorus is going to be supported by either government no matter what they claim because ultimately everybody knows the way forward for NZ is to utilize the UFB network. The government has made it quite clear they intend on protecting Chorus.
The fundamentals look good, the charts look good, analysts have it at around $3 to $4, the government has pledged support re the regulatory issues. And now the share is trading at a slight discount due to panic just before the dividend. That's why I say brilliant!
Nextbigthing.
Disc; happily added even more today at these prices to the overall very healthy looking portfolio!
BTW, Chorus is only in the news as Labour need something to try and gain some ground on hence they're trying to make an issue of it to support Cunliffe. Good luck to them - John Key is sharp as a tack. Read this - it's well worth a laugh
http://www.stuff.co.nz/national/poli...us-on-the-mind
You may well be right. CNU may go well but I'm certainly not panicking, but nor am I being blinded by the pending dividend.
I am just wary of companies that are as you say, dependent directly on Government support and subject to the winds of political change.
I would now sooner take the profit and keep my money elsewhere.
I do however plan to connect to UFB just as soon as it rolls out past my door. Just a shame it will take so long.
I have been itching to buy some CNU shares for a long-term investment, but haven't quite pulled the trigger... all this media attention has helped keep the price low and may continue to do so... and if panic or depression sets in, I'll be happy to come to the aid of sellers.
A HUGE trade first thing this morning
A well balanced piece from Chalkie
http://www.stuff.co.nz/business/opin...ricing-options
I think the risk is mitigated on this investment the longer your time horizon, eventually we'll all be on Fiber, so really, how long is your time horizon should indicate if this is a good investment. This is a slow staple and a bit of a backbone in my portfolio, I know its got some risks associated, but I don't see them turning into anything. National have shown commitment, likely they'll get in again, and all these problems will fade away with time.
With Cunliffe attacking it in the house yesterday, the political risk, much like with the power companies is there.
Disc: HOld
It does raise questions as to why a unique piece of the country's infrastructure, a natural monopoly, isn't state owned as the transmission company, Transpower is. It seems to make as much sense having it privately owned as it would if State Highway One was privatised and became a toll road - Heaven forbid!
The splitting of Telecom into the two companies would have been the opportunity to take back the monopoly copper wires and the future fibre network - with appropriate compensation to the owners of course. As it is, CNU will continue to be a political football and a source of frustration to investors and users alike.
Disc: Small holding in CNU.
good point. Would have been slightly different if the Fiber rollout wasn't so dominate by Chorus as then there would be more bench marking available for regulators (like local lines companies).
Market Cap is $1b so the government could have taken that out easily.
Surprised Labour haven't proposed it as then they could hike up the fees like they did with power prices during their last reign. ;)
Labour, like Cristina Fernandez in Argentina and Hugo Chavez and his successor in Venezuela, are congenitally unable to pay fair compensation, or indeed any compensation to shareholders.
Voters have a choice as to whether they remain part of the OECD, advanced Western economies including Japan, South Korea etc, or become part of the 3rd World under Labour.
Significant BOT distribution happening today. A bit of patience required for those looking to buy in. What date is it XD please anyone?
Thanks Karen, see.... I can'tre member much these days......
ASB says 25th, though also say 0% Franking so not 100% trustworthy. (actually pretty crap from ASB to be using Australian info (franking) for NZ shareholders)
Does the NZX have a easy to read table of upcoming dividends - if not why not and if so, why is it so hard to find! What we need is someone on this site to create a dividend website with this information on it ;)
It does: https://nzx.com/markets/NZSX & https://nzx.com/markets/NZAX
It may not be a NZX failing here.
Our favourite site for NZ dividends does not appear to have upcoming dividends, though perhaps it does and it is so hard to find!
Best Wishes
Paper Tiger
Craigs Investment Partners, Arie Dekker, says --"We're recommending that investors wait for greater certainty on those key drivers,"
How did Radio NZ make the outrageous title - "Sell Chorus shares, says analyst"? When did Radio NZ become investment analyst? Analysts interpreted the uncertainty situations only but did not advise to sell.
Craigs Investment Partners, Arie Dekker, says --"We're recommending that investors wait for greater certainty on those key drivers,"
How did Radio NZ make the outrageous title - "Sell Chorus shares, says analyst"? When did Radio NZ become investment analyst? Analysts interpreted the uncertainty situations only but did not advise to sell.
oops, my bad. Quite right, ex date is 25th, put it down to a typo??
ASB has this for upcoming divs, https://www.asbsecurities.co.nz/quot...ingevents.aspx
using CTRL/F, type code in box which appears
Do you see CNU on that list? Only the next 7 days (though I only see todays), not all declared dividends. No doubt Waldon decided he could charge for that.
It was a suggestion.Quote:
Our favourite site for NZ dividends does not appear to have upcoming dividends, though perhaps it does and it is so hard to find!
$2.83 while people panic as it's bashed in the news... Nice chance for some trading?.... $2.98 again after things quieten down again and people remember the juicy dividend?....
Disc; happily holding
Spinning top today with late recovery in the auction
i tried at 280, but too far down the queue
perhaps a better indication of direction tomorrow
Is NBR guilty of manipulation. Haven't read todays story as its behind the paywall but they slame the stock yesterday, then pump the stock today (based on headline). I wonder if the reports bought before yesterdays close as he was writing todays story.
Said in jest of course ;)
well, not perfect pitch but joined the chorus today in the opening auction. Yesterdays late recovery and the no-taper rally convinced me to get in. Bit of a tail off the highs near the close, but yesterdays buyers probably took the quick profits available.
P.S. todays NBR story was reporting of buy recommendations from Forbar and UBS
Ahhh gotta love the games;
http://www.stuff.co.nz/business/indu...-copper-taxing
Talking of hopes and dreams...I would love to see us win the America's Cup on the weekend and that positive sentiment to flow through to the markets on Monday with everyone realising the world is good and hey there is a huge divvy on offer with CNU.... the mad rush pushes it up to about $3.15 on Wednesday, and for it to then drop back to nice support of $3 per share ex-divvy. Asking too much??
Yes, lol, but I won't complain if your plan comes to fruition
Can someone please explain this too me if I have 1share and the upcoming div = Final 15.500c supplementary 2.735c imputation 6.028c
How do I work out what will end up in my account? Do you have to do something at the end of the year with the imp. credits?
Thanks for you help in advance!
Hi NZSilver,
Not having any 'early learning' in economics or accounting, I decided at this late stage to enlist the help of ShareSight. I do all my 'broking' through Direct Broking, and they convey any transactions I have done to said ShareSight. On March 31, I press a button, and from my printer there issues an annual statement, dividends, supplementary, imputations..... all things I know little to nothing about, BUT, which my accountant can deal with in a form acceptable!!!
Spares me from confusion and anxiety, saves my accountant time, and me money. The latter is important because I am not handling huge amounts of $, so any simplification is valuable.
This may be simplistic, but ... Hope it helps. G.
Assuming you are a NZ resident/taxpayer, your account will receive payment after tax of (15.5c + 6.028c) x 0.67% = 14.42376c per share.
You will include the imp. credits in your 2013/14 tax return, and they will be subtracted from the tax otherwise payable on your taxable income.