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Just replied on the other thread - but might be better here:

Lamak - not really, I pretty much just look at 3 and 5 year charts in combination with divi yield and P/E. More importantly though, is that I needed a 5% yield, so need to balance out some lower( but fast growing) divi payers like Capitec, MPC, RMI with some pretty boring but high yield options - generally listed property.

Also I am fairly realistic in expectations - want 10% capital growth and inflation busting dividend growth. 15% and over capital growth would make me really happy. This year ending August will be the first year I can start the figures - divi yield on original sum is around 5.5% after dividend tax.

Did seriously look at ETF's, but:
a) None gave me the divi I needed - the good income ETF's where between 3 - 4%
b) At the time they all had a fair amount of ABIL - which I disliked
c) Most DIVI etf's generally have a fair amount of resources - again, I dislike.

That said, a mix of Fini/ indi and property could work pretty well

e) lastly, I think buying individual stocks is more fun, which means you put more cash in - always a good thing. I enjoy keeping tabs on the companies I have shares in - with ETF's it's a lot less personal.

I bench mark to the SATRIX Divi because it has the highest dividend. If for a few years I under perform it by a couple of percent, I will think of switching - but so far it's been pretty easy to beat.
Maybe I should switch benchmarking to 1/3 fini/indi/prop  Might see my ass.

Pretty easy to work out of course:

5000p/m x 12 = R60k per year. Working on a 5% average forward yield gives you a nice diversified portfolio - any higher you get very property heavy. So R1.2mil will do it.

I guess one will get tax after you are dead...does that that mean tax is superior   ....I guess that is life.

I recently went the trust route and am enjoying the benefit of splitting my ceilings on limits. So the trust will will be taxed separately to me and vice versa. Additionally, no waiting times for the family in terms if living expenses. A little bit pricey but worth it.  Better than giving money to SARS.

In essence I will have two portfolios- one in the Name if the trust and one my personal name.

Now let me open the floor to critiques as I still from time to time think of all the admin effort for tryst (setup & maintenance)

Enjoy the week

One thing I should add when planning your portfolio is using your R30K p/y CGT free allowance. and of course your TFSA. So, as it stands now to minimize what you give to the government:

REITS: R1.2mill at 6% yield gives R72K - tax free income
Sell R30K of high growth, non dividend paying, stock per year - around R300K's worth.

Then 16 years of decent dividend paying stocks at R2.5K per month compounded at 15% per year gives around R2mill tax free lets say 3.5% dividend yield = R70k per year

So gives you a yearly salary of R172K tax free income. Of course they'll just nail you when you open your wallet 

So, my idea is:

REITS and high growth stock in a normal trading account.
Using the TFSA for good dividend paying ETF's

lastly, if you need more - maybe high growth stocks (CGT) might be best from a tax point of view - 1/3 18% - so 6% for quite a bit vs 15% on dividends. Of course, this is just from tax point of view, IMO there are other reasons why I like dividend stock - but there is definitely some room (and good reasons) in my portfolio for some NPN/ APN and others.

Fantastic post, I might do a blog post on this at some point if you don't mind.

I'm a novice to buying equities. One thing I do know is some companies pay dividends and others do not. So where do I find a list of companies who pay dividends, especially one that shows the percentage of the share price e.g. dividends per share?

Thanks in advance.

Hi. Cannot help you bonds - know nothing about them.

Know of no ETF that pay out monthly - thing the admin on their side would be a hassle - most pay out 4 times a year, and even then, it's not spread equally as companies generally pay out twice, but often only once a year. For me, I work one year behind. So I clear out the account only once a year, then divide buy 12 for the new year. Helps with planning!

I only have ETF's in my TFSA. At the time I was not impressed with the dividend ETF's (really only the SATRIX DIVI) as it had a big abl holding as well as lot's of resources. Then there is DIVTRX - pay's out an ok dividend with some nice mid caps so you should get some growth with it. Then any ETF based on financials is going to pay out a decent dividend. Lastly any property based ETF. So 50% property and 25% fini/ 25% div trx. Thumbsucking figures I would guess something like 5.5% + 4% + 3.5% = avg 4.3%

And if you think the market is pretty much going to move sideways for a while and you are just after income, PREFTRAX pays out over 9% - something I am thinking about. Of course you can also get close to that yield with some of the smaller listed property companies.

Perhaps good dividends are great but consistent erosion of the capital is not.  PREFTRAX has been in a decline since it was registered on the JSE.

IF I took them It certainly would not be for the long term - just a year or two. I wouldn't recommend anyone taking them for the long term - but it is interesting as a short term income producer, esp if your money is in a TFSA

Thanx for the reply. The only reason I was interested in bonds was because, according to my knowledge, bonds have monthly interest payments. That was very enticing to me.

Plus in my research (I am still a beginner investor) a lot of people said take 110 and subtract your age. The number that is left is what you should have in common stock and the rest should be in bonds. Now of course some people dispute that but they all seem to agree that you should have some of your portfolio in bonds nevertheless.

Now if I had to apply this principle to my portfolio then to all intents and purposes I am dead in the water - I have no bonds nor property stock in my portfolio and have no intent of selling off counters to move into these types of instruments.
So its really a case of different strokes fro different folks and what your end goal is, and what your reality checks tell you as milestones.
As this thread infers some people want to have dividends to meet present or future expenses, I am looking for capital growth over the long term to meet pension shortfalls and ensure that my quality of life as it exists now is not eroded
As I have stated I have a plan which meets my criteria and needs for the long term - with a horizon of the next 10 to 30 years (if I live that long) One of my objectives is that my wife would not have to sell any shares in my portfolio but use it and other cash components of my estate to augment her loss of 50% of my current and future pension i.e. she is put in a better position than she is currently in