Dear investor,
We really are “the lucky country” (of investors).
According to Credit Suisse, of all stock markets in the world, Australia’s is the second-best performer since the year 1900! It returned 6.7% per year through 2022.
(That turns every $1,000 into $2.7 million.)
South Africa is the #1 stock market at 7%. The USA is #3 at 6.38% per year.
But here’s the key insight…
Extraordinary long-term growth isn’t the only reason to love Aussie shares…
We also have franking credits!
As you will know, a franking credit is a ‘tax credit’ stored at the ATO for shareholders to redeem or collect after June 30th. The credit is ‘created’ when Australian taxes are paid by the company they own.
There are some ‘franking credit rules’, such as, you must be an ‘eligible’ shareholder and own the shares for at least 45 days.
(Day traders can’t collect ATO tax credits, even if they get the cash payment.)
In effect, franking credits boost the investment return for Aussies. And it’s arguably the most powerful for retirees — since retirees can claim a tax refund if they have excess franking credits waiting for them.
Put another way: I don’t know the exact numbers but I reckon, had franking credits been included in Credit Suisse’s study, Australia would be the #1 stock market.
7 ‘retirement ready’ dividend stocks for juicy, passive income – WATCH LIVE
By now you will know that I — Owen Rask — use ETFs to create our Rask Core Portfolios. Index ETFs are simple, diversified, low cost — and, yes, you get franking credits!
For example, for the new Rask Invest portfolios (launching soon), we will be using the Vanguard Australian Shares Index ETF (ASX: VAS) to harvest growth and franked income from Aussie shares.
And we might use the Vanguard High Yield Australian Shares ETF (ASX: VHY) for some part of the Rask Invest retirement portfolio.
But while ETFs are great. Where does that leave individual stocks? Are there any stocks I’d buy for a passive income retirement?
You betcha.
Tonight at 6pm at this YouTube link, I’ll be covering how to build a retirement portfolio for dividend income and growth.
Then I’ll be explain why and how I’d consider using shares of these 7 companies:
- Wesfarmers Ltd (ASX: WES) – the owner of Bunnings & Kmart, and much more.
- Macquarie Group (ASX: MQG) – the company with the ‘silver donut’ logo, otherwise known for being Australia’s largest investment bank.
- Washington H. Soul Pattinson & Co. Ltd (ASX: SOL) – one of my favourite dividend stocks on the entire ASX.
- Lovisa Holdings Ltd (ASX: LOV) – the fast-growing retail company that’s breaking the ecommerce rules.
- Cochlear Ltd (ASX: COH) – the world leader in implantable hearing aids.
- Dicker Data Ltd (ASX: DDR) – Australia’s largest IT distributor that won’t break.
- Smartpay Ltd (ASX: SMP) – a growing company that… doesn’t pay a dividend… yet.
All seven of these companies do something different. They have different prospects for growth. Different ways of generating dividends… and so on.
When combined, they could make for a wicked cocktail of dividend income.
That’s why we’ll be diving into each stock and why I think they’re so compelling, tonight at 6 pm.
Of course, you can ask your questions about ETFs, business, property… whatever!
7 retirement-ready dividend stocks – Watch LIVE at 6pm
All you have to do is arrive at this YouTube link at 6 pm.
As always, we’ll be going live for Rask LIVE, brought to you by Selfwealth.
The stream will kick off shortly after 6 pm, Australian eastern time.
See you soon!
Subscribe to YouTube (for alerts)
Join the session (6pm Wednesday)
Owen Rask
Chief Investment Officer, Rask Invest
Founder of Rask
