My brother was a CBA holder and kept adding to his holding over the years. He died early this year and I inherited his shares - NAB and CBA. I will give an example of his/my position.
Say 1000 CBA (it is more than that), cost price $54.65 - say I sell at $145 - lets say $90 profit. That is $90,000 profit @ 30% tax - $27000 tax. Not held 12 months.
$27000 divided by 1000 is $27 tax on each share. (A lot more if I go into the next tax bracket - which I would)
$145 - $27 = $118. So I have to buy in lower than $118 to be ahead. Yes just one example.
Your example of a stock and divies. My sister has been accumulating FMG over the last 10? years. From $1.50 onwards. She has approx 200,000 She has had divies some years of over $500k.
CBA Price at posting:
$142.09 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)