Sell or hold??, page-51

Impossible question to answer as that's a very individual circumstance ....and therefore depends on your own situation at that time.... and also where the company is at....

Some might be a hold for dividend income, some might be a sell profit taking....some as has been written below might recoup their capital (protecting capital) and hold the remaining shares (income producing) .

One thing with dividends ....keep in mind yield and franking credits .....and be realistic about what they may be....@6151....I know you were just using an example but 10% future dividend from MSB is quite unrealistic ....CSL only pays a dividend yield of around 1% and has zero franking credits....one of the main reasons i've stayed away from CSL is the amount needed to be invested vs the return.....in order to get a decent return how much needs to be invested? Answer quite simply a heck of a lot these days ....there are many other companies that provide a better return for less investment ....however again that's a personal situation decision ....for me I'd rather put the same amount into another company and get better returns per share with franking credits ...slightly different though from investing in MSB at a much earlier stage. It is however relevant to look at it as an example and to consider what actual returns you might get given the level of investment made ....

An example $1 Million investment ....

a company share price $100 ....announces they are paying a dividend.....1%.... $1.00 a share no franking ....you own 10000 shares

so you will get $10,000 in dividends (10,000 shares x $1)


Sounds great...... however.... what if you had invested that same amount in shares in another company ? You own 20000 shares at $50.

They announce they are paying a 3% dividend

you will get $30,000 in dividends (20000 shares x $1.50)


For the same amount invested....different returns and that's not taking into account any franking credits to help offset income tax just a very simple example.

As I noted above very dependant on your own situation and aims at that time ....using this purely as an example ....all I'd say to anyone is do what is best for you not what might be best for someone else

Cheers