high yield

Income investors should invest in growth stocks, not income stocks

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At Fairmont Equities, we conduct dozens of free portfolio reviews every year for investors looking to improve their returns. There are a range of reasons as to why a portfolio does not live up to an investor’s expectations. One of the common problems we see over again is an over reliance on shares with a high yield. Often an investor chooses high yielding stocks because they are investing via an SMSF, even though they are still in accumulation phase. They …

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How to get good yield without franking

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Share investors at the moment can receive cash refunds if their franking credits exceed their tax payable. The Australian Labor Party (ALP) wants to eliminated these tax refunds if they are elected to federal government next year. The dividend imputation system was introduced to avoid double taxation where the company already pays 30 percent tax on income. Tax payers who pay little tax will be most affected by this change. Self-managed Super Funds are currently exempt from tax when they …

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