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Re: International Dividends/Funds


@retiredat48 wrote:

 

Consider TIBIX... Thornburg Income Builder Fund...with lots of international.  Yield north of 5%.  Fund goal is to build the dividend each year; capital gains secondary.  Owns mostly stocks.  I use it as one of my bond side allocation substitutes.

R48

 


Great tip--really appreciate this.  Unfortunately, Schwab offers only the higher-cost A shares with ER of 1.27, which really bites into an otherwise attractive yield.  However, seems like there are quite a few of these "income builder" type funds in the World Allocation category, which I hadn't come across in my other searches.  Looks like American Funds offers an interesting option as well CIBFX with a lower standard deviation & ER, but lower yield as well (3.48).  Thanks again, I'll do some digging in this category.

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Re: International Dividends/Funds

I owned TIBIX from 2005 until this year. Its performance is streaky—which is OK, you must expect that from any actively managed fund. But after a careful review of its performance, volatility, cost, and objectives, as well as other Thornburg funds (like THOIX) with roughly similar portfolios or common managers, I lost confidence in the fund and Thornburg. Accordingly, I jettisoned it from my portfolio. 

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Re: International Dividends/Funds


@KathieL wrote:

Note that stocks from the UK and Canada will not withhold for taxes if the stocks are held in retirement accounts.  So put your Canadian and UK dividend payers in your IRA.  

Other countries will withhold some of your dividend for taxes, and those should be held in a taxable accounts so you can recover the taxes when you file your income tax.


Not exactly.

Canadian exemption from IRA Withholding can only be claimed if IRA custodian has filed a form with the Canadian tax authority. Some custodians have not filed. A few years back there were problems with the Canadian tax being withheld from VG IRAs.

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Re: International Dividends/Funds


@chang wrote:

...Accordingly, I jettisoned it from my portfolio. 


Chang, what did you replace it with?

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Re: International Dividends/Funds


@unbiased2020 wrote:

@chang wrote:

...Accordingly, I jettisoned it from my portfolio. 


Chang, what did you replace it with?


Getting rid of TIBIX was part of a significant portfolio overhaul, so it wouldn't be very enlightening to tell you exactly what I put in its place. (I held it in both a Roth and T-IRA.) More generally, though, I dumped TIBIX and DODFX (both LCV) and distributed the proceeds among VGWAX (LCV-US & Foreign), VWILX, APYDX and MATFX (all LCG). So, in a nutshell, I (mostly) shifted from foreign value to growth

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Re: International Dividends/Funds

Thanks, Chang.  Makes sense.  I'm moving in a different direction, trying to mildly increase the yield, lower risk, and prepare for drawdown in a few years.  Will likely end up with more a value tilt.

Also, did some historical pricing on TIBIX and the other "income builder" funds.  Dang -- they got SMOKED in the Great Recession--50% capital loss.  I'm not sure how comfortable I am with that kind of a risk long term.  TIBIX never recovered to its pre-2008 price.  Got close, but took a long time.  If I'm using these for income, there is certainly a bigger risk here for permanent capital loss than I originally anticipated.

TIBIX_YahooFinanceChart.png

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Re: International Dividends/Funds

Just wanted to wrap up this thread with where I settled on deploying capital after extensive research:  EFAV

Pros: 

  • 0.2 ER -- one of the lowest
  • High asset base, easy to trade
  • respectable 3%+ yield
  • lowest standard deviation in large value category
  • surprisingly good long term performance, which means good capital appreciation potential
  • while not an income fund, still presents with a 7.24% 5 year dividend growth rate

Cons:

  • explicitly NOT an income-focused fund, so yield could plummet if the volatility factor starts leaning low-dividend stocks
  • semi-annual distribution--would prefer quarterly
  • volatility factor may underperform and if yield drops it would be a double-whammy

Otherwise, this really fit the bill. 

I should mention the close runner ups, in case others want to go that way -- I think these could also be worthy contenders although both are more expensive than EFAV:

  • VTRIX (Vanguard International Value)
  • HFQTX (Janus Henderson Global Equity Income)

Thanks to all for the many worthwhile suggestions for research.

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Re: International Dividends/Funds


@unbiased2020 wrote:

Thanks, Chang.  Makes sense.  I'm moving in a different direction, trying to mildly increase the yield, lower risk, and prepare for drawdown in a few years.  Will likely end up with more a value tilt.


I explained in another thread why I prefer foreign growth over value, on general principles (regardless of prevailing "relative valuation" metrics such as P/E spreads, etc.). Income is nice, but IMO secondary to total return.

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Re: International Dividends/Funds

Couldn’t agree more—this is just the “dividend” slice of my foreign allocation.  I have MFAPX and PRIDX for the growth side, and those funds have been off the charts and “safer” oddly during the recent turbulence.

We'll see how my revamp works out. Aiming for a “hybrid” model where some of my assets produce income for expenses in retirement while others are strictly total return positions. That’s a whole other conversion...

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Re: International Dividends/Funds

Expenses of 4.11%?


@xray wrote:

steelponey10....

 You might want to also take a look at AVK which has been on a tear and just went x-div [8/13]. This has been a great CEF [for income investors] and for trading purposes [CapGains-buying/selling-adding shares/selling excess shares] and dividend [dividend has been decreasing with the steady rise in the current MktPrc]....

 Looking at my current analysis data:

https://tinyurl.com/y4qrws8j  

....Current "abbreviated" analysis data [COB Friday] on AVK [sole opinion]:

1... Report Card Grade: 100 [0-100 rating system]

Power Rating: 100 [must be higher than the RptCard grade for any further buy consideration]

2... Star Rating: Positive: 10star [0-10star reference with 10 being the max]
... !3-wk Star Rating: Positive 10.00 stars

3.. MktPrc: 14.11 [COB Friday] 
-Analysis Score for MktPrc/NAV past week: 372 [>300 required for positive week]
-Last average weeks market activity on MktPrc: +0.06 [investors have been Buying]
-Discount: -1.14 Very Positive for current investors...
-What are investors doing last week: +0.01 [investors buying]
-trades in a "normal" tight MktPrc range of 14.05-14.07 [unless market is correcting]

4... Distribution [not a dividend]: now 9.97% for new buyers [$0.1172/Month ... $1.40652/Yr] ... x-div 8/13 ... Pay 8/31
...Last distribution was the same as usual
...Next distribution announcement expected approximately 9/4

5... Last Insider buying activity: 6/13/19 4,600sh @ 14.24

6... Rf [risk factor for holding in one's portfolio]: Positive +1.074 [+0 to + 1.068 range for analysis evaluation]

7.. NAV: 16.08 [COB Friday] ... Undervalued
-Change in NAV last week: +$0.06
-Change in Intrinsic Value [COB Friday]: +$0.16
-Change in NAV since 3/20: +$8.46 [+$4.58 minimum required]

8... Total analysis numb3rs: 2056/3147 [requirement is 1000/1400 for normal trading range and >2000/2500 for current buying activity]

9... Trend [looking forward]: +862 [+472 minimum required]

-CapGain to date: +$572

... Disclosure: Some of us currently hold a Phase #3 position [6% - 8% of total portfolio] position in AVK....

Another "single opinion" of the many I am sure....


 

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