Factor income – DNZ Mladi http://www.dnz-mladi.com/ Wed, 29 Jun 2022 20:19:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.dnz-mladi.com/wp-content/uploads/2021/11/icon-13-120x120.png Factor income – DNZ Mladi http://www.dnz-mladi.com/ 32 32 Investing in low-valuation REITs for growth and income https://www.dnz-mladi.com/investing-in-low-valuation-reits-for-growth-and-income/ Wed, 29 Jun 2022 17:39:27 +0000 https://www.dnz-mladi.com/investing-in-low-valuation-reits-for-growth-and-income/ Many investors look for assets that don’t move with stocks and are inflation resistant. Are REITs the answer? After suffering steep declines this year, many investors with stock-heavy portfolios are looking for assets that don’t always track stocks. And with inflation at a 40-year high and interest rates rising, investors are also looking for assets […]]]>

Many investors look for assets that don’t move with stocks and are inflation resistant. Are REITs the answer?

After suffering steep declines this year, many investors with stock-heavy portfolios are looking for assets that don’t always track stocks. And with inflation at a 40-year high and interest rates rising, investors are also looking for assets that are resilient to the negative impacts of these trends.

One type of investment that meets these needs is real estate investment trusts (REITs), an alternative asset (i.e. an alternative to stocks or bonds). Often overlooked by individual investors, these publicly traded companies are landlords who own various types of rental properties, including apartment complexes, office buildings, shopping malls, data centers and free storage facilities. -service.

Investing in REITs is a convenient way to derive income from rental properties which can be extremely difficult to own directly. Although REITs generally involve more risk than bonds, they offer much higher returns. They can be essential parts of doctors’ retirement portfolios, especially those in small private practices who don’t have pensions.

Currently, fundamentals and markets for REITs in various categories are signaling likely growth over the next two to three years. However, today’s negative economic headlines — inflation, rising interest rates, the effects of Russia’s invasion of Ukraine and fears of recession — are causing headwinds, and investors are hesitant to buy REITs. in certain sectors. Thus, the obvious potential of these REITs has not yet translated into higher share prices.

less damage

Characteristically, REITs in general suffered less damage than stocks in last year’s turbulent market. Over the past 12 months to May 31, the MSCI US REIT Index has returned around +2%, while the S&P 500 has returned around 0.4% (including dividends). One of the main reasons for this difference is the attractiveness of REITs to investors as a hedge against inflation (8.5% per year), as landlords can raise rents to cover rising costs. And historically, REIT prices have moved with stocks only about two-thirds of the time, so REITs can somewhat diversify stock-laden portfolios.

High credit quality, which comes from owning durable assets, strengthens REITs against rising interest rates. Additionally, they typically have low levels of debt and, depending on the type of assets they own, fixed rate debt with longer maturities. Therefore, increases in short-term interest rates generally do not have much impact on the cost of capital of these REITs.

One of the best things about REITs is the income they provide in the form of high and regular dividends, stemming from a special tax status requiring them to pay out 90% of their taxable income to shareholders. Many have dividend yields (the percentage of a company’s share price paid out annually to investors) in excess of 4%, and some much higher.

This is usually more than stocks, which rarely have dividend yields above 2% or 3%. Of course, the main purpose of owning stocks is to get price appreciation, but investors can get that from REITs as well. Good growth and reliable dividend income represent the best of all possible REIT scenarios.

It’s time to be greedy

Fear is a big factor currently holding some REIT prices down. This scenario invokes Warren Buffett’s classic advice to investors to be “scared when others are greedy and greedy when others are scared.”

A key indicator used to value REITs is the ratio of price per share to funds from operations (P:FFO). Similar to stock price-earnings ratios, this measure represents the price investors must pay to obtain a given level of earnings.

At the end of May, the median P:FFO ratio for all REITs was 22.57. Some REIT sectors with good market prospects remain well below this level. To the extent that these low valuations stem from investor fear, this price gap in REIT sectors could signal opportunities for foodies, in the Buffettesque sense.

Low valuation sectors

These REIT sectors include:

Office buildings

In this period of rising interest rates, this category’s specific tendency to rely on floating rate debt has likely deterred professional investors, and stock prices continue to slump even as demand post -pandemic office space began to increase.

Concern that office REITs will suffer if more companies make work-from-home policies permanent likely suppresses interest in office REITs.

But don’t bet the farm on the longevity of working from home. In markets outside of major urban centers such as San Francisco, Chicago and New York, the return to the office is well underway, with CEOs emphasizing the value of time spent in person and workers seeing the potential benefits of spending time with the boss up close and personal.

As the demand for office space increases, the pricing power of landlords over rents will also increase. In the meantime, the share prices of some office REITs, pushed down by the pandemic, remain very low. For example, at the end of May, SL Green Realty Corp. (SLG) was trading around 2011 or Great Recession levels. Other examples in this sector include Vornado Realty Trust (VNO) and Alexandria Real Estate Equities (ARE).

Regional shopping centers

With a P:FFO of 10.82, less than half the overall level for REITs, this category remains hard-fought, despite the massive return of shoppers to stores this year, boosting physical sales.

It turns out that online sales have also increased significantly this year. The rise of both types of shopping indicates great potential for retailers offering both – a tandem model now common to many mall-based department stores and served by sales associates who help in-store shoppers order online. line if the items are not in stock. People can still see and smell the merchandise, but stores don’t have to have that much inventory.

The dominant name in shopping center REITs is Simon Property Group (SPG), which probably owns almost every high-quality shopping center you’ve ever walked into. Despite a recent dividend increase (bringing the yield to nearly 6%) and a strong prospect of tenant demand for commercial space, Simon’s share price was down about 29% for the year at the end of May.

The company has more than 200 properties in 35 states and also operates overseas. The second largest US competitor is Macerich Co. (MAC), with
45 shopping centers. Macerich’s price is down more than 30% this year.

Suburban malls

Also known as strip malls, these are small groups of retailers where you drop off your dry cleaning and pick up your groceries on your way home from work. Typically anchored by supermarket or drugstore chains, these centers also have restaurants, ice cream parlors, spas and other small retail establishments as tenants.

Their market niche is convenience for people who want to shop close to home – particularly attractive during quarantine but also a perennial benefit.

Examples include Urstadt Biddle Properties (UBA) and Kimco Realty Corp. (KIM).

Health care

Unlike hotel or self-storage REITs, the healthcare category cannot increase rents sharply due to long-term leases (although they tend to have automatic indexation clauses linked to inflation ).

Consumer demand for skilled nursing facilities is slow to return amid lingering publicity scare about high death rates in nursing home populations early in the pandemic. At the same time, operators were forced to pay significantly higher wages to compete for employees. But as fears ease and facilities adjust to rising costs, performance, which is currently good relative to stock prices, should improve.

Examples include Omega Healthcare Investors (OHI) and Healthpeak Properties (PEAK).

When selecting REITs that rely on local consumer demand, such as apartments, offices, and retail, it’s best to focus on those that own Sunbelt properties. To a large extent, their growth is in line with population growth, which is currently rapid in the south and southwest as people move to these areas from the crowded population centers of the northeast and west coast. .

Also, it is generally better to own REIT shares directly rather than through funds. This way, you won’t end up investing in underperformers included in the indices. And owning directly means you don’t have to share income and appreciation with fund managers.

David S. Gilreath, a Certified Financial Planner, is a 40-year veteran of the financial services industry. He is a partner and chief investment officer of Sheaff Brock Investment Advisors, LLC, a portfolio management firm for individual investors, and Innovative Portfolios, LLC, an institutional money management firm.

Edward “JR” Humphreys II, Chartered Financial Analyst and Chartered Alternative Investments Analyst, is a senior portfolio manager at companies, specializing in fixed income and alternative investments. Based in Indianapolis, the companies manage approximately $1.4 billion in assets nationwide.

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Regardless of income level, black and Hispanic children have more asthma https://www.dnz-mladi.com/regardless-of-income-level-black-and-hispanic-children-have-more-asthma/ Mon, 27 Jun 2022 21:46:37 +0000 https://www.dnz-mladi.com/regardless-of-income-level-black-and-hispanic-children-have-more-asthma/ Neighborhood characteristics, race, and ethnicity have been shown to be risk factors for developing asthma in childhood, suggesting inequalities in children’s respiratory health. According to a study published in JAMA Pediatrics. Children from densely populated or poor neighborhoods were also more likely to develop asthma and wheezing. “Understanding the relationships between race and ethnicity and […]]]>

Neighborhood characteristics, race, and ethnicity have been shown to be risk factors for developing asthma in childhood, suggesting inequalities in children’s respiratory health.

According to a study published in JAMA Pediatrics.

Children from densely populated or poor neighborhoods were also more likely to develop asthma and wheezing.

“Understanding the relationships between race and ethnicity and the physical and social environments of neighborhoods that contribute to the persistence of early childhood wheeze and the onset of asthma is critical to guiding research, policy and interventions to reduce disparities in asthma,” the authors wrote.1

A longitudinal study was conducted to determine associations between measures of neighborhood socioeconomic status and the incidence of childhood wheeze and asthma.

The researchers also examined whether socioeconomic status at the neighborhood level modified the association between race and ethnicity and childhood wheezing and asthma.

The study population included 10 of the 12 cohorts participating in the Children’s Respiratory and Environmental Workgroup consortium, including children born over a 4-decade period in various parts of the United States. Each child’s home address was matched to US census tract data corresponding to their year of birth.

The resulting analysis revealed wide disparities in census socioeconomic indicators by race and ethnicity.

Black and Hispanic children were found to be more likely to reside in neighborhoods with high population density and higher rates of poverty.

In census tracts with high proportions of the population below the poverty line, 49% of children were black, 35% were Hispanic, and only 13% were white.

In areas where proportions of the population were below the poverty line, the majority (83%) of children were white.

Children born in census tracts with higher levels of poverty and lower family income have been identified as having a high risk of wheezing and developing asthma.

Of 5809 children studied, 46% reported wheezing before age 2 and 26% reported persistent wheezing until age 11.

Although the prevalence of asthma at age 11 varied by cohort, black children (RR, 1.47; 95% CI, 1.26-1.73) and Hispanic children (RR, 1.29; 95% CI, 1.09-1.53) had a significantly increased risk of asthma incidence compared with white children.

Black and Hispanic children also experienced an earlier onset incidence of asthma.

Additionally, race and ethnicity persisted as risk factors after adjusting for neighborhood income. The authors suggest this points to the presence of structural inequalities that increase the risk of wheezing and asthma in black and Hispanic children, regardless of neighborhood wealth.

However, the study did not find that neighborhood factors significantly changed asthma risk estimates in black or Hispanic children, although the risk of asthma incidence remained higher in black and Hispanic children in all neighborhoods.

Stress, racial bias and differential access to health care and other resources may persist among Black families in affluent neighborhoods, contributing to asthma risk, the authors note.

These results add to previous studies showing that race, ethnicity and neighborhood factors are associated with disease onset.

The authors suggest that future studies should be conducted taking into account the neighborhood and individual level characteristics that, individually or in combination, account for the high incidence rates of asthma to help guide interventions and treatments. policies aimed at improving the health of those disproportionately affected.

“As with all other health outcomes for which racial disparities have been documented, racial disparities in asthma risk reflect the reality that race is a social construct that serves as a proxy for the complex interactions between genetic ancestry and environmental and social factors related to structure and interpersonal racism,” wrote the authors of an accompanying editorial.2 “Mitigation of racial disparities in asthma risk will require structural solutions and policy changes.”

Reference

1. Antonella Z, Patrick HR, Brent C, et al. childhood asthma incidence, early and persistent wheezing, and neighborhood socio-economic factors in the ECHO/CREW Consortium. JAMA Pediatrician. Published online May 23, 2022. doi:10.1001/jamapediatrics.2022.1446

2. Daniel TM, Tyra CBS, Diana MW. Disparities in childhood asthma – race, location or not keeping up? JAMA Pediatrician. Published online May 23, 2022. doi:10.1001/jamapediatrics.2022.1457

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RoboApe (RBA), Akitu Inu (AKITA) and Kishu Inu (KISHU) – CryptoMode https://www.dnz-mladi.com/roboape-rba-akitu-inu-akita-and-kishu-inu-kishu-cryptomode/ Sun, 26 Jun 2022 12:04:18 +0000 https://www.dnz-mladi.com/roboape-rba-akitu-inu-akita-and-kishu-inu-kishu-cryptomode/ If you are interested in cryptocurrencies, you will want to check out these three coins with their unique income facilities: RoboApe (RBA), Akitu Inu (AKITA) and Kishu Inu (KISHU). Each offers something a little different. Read on and see which one is right for you. RoboApe (RBA) has distinctive features than other Meme Coins Despite […]]]>

If you are interested in cryptocurrencies, you will want to check out these three coins with their unique income facilities: RoboApe (RBA), Akitu Inu (AKITA) and Kishu Inu (KISHU). Each offers something a little different. Read on and see which one is right for you.

RoboApe (RBA) has distinctive features than other Meme Coins

Despite being a meme coin, RoboApe (RBA), which has a large investor base, shows performance during the pre-sale process. Buyers pointed out that token prices will increase significantly in the medium to long term. In particular, RoboApe, which attracts attention thanks to its financial track record, is considered separately from other meme coins. The blockchain network offers an educational program for investors unfamiliar with blockchain technologies and cryptocurrencies. They state that in this academy called RoboApe Academy which is an educational function that teaches people everything they need to know about crypto.

RoboApe also plans to create a Collecting NFT with the aim of increasing the value of the assets of RBA token holders through such collection. Likewise, the ecosystem aims to attract a large audience. RoboApe (RBA) has an eSports-focused marketing campaign. It is stated that the project will be announced to broad masses with the cooperation to be done in this field. RoboApe has a deflationary financial card. In accordance with this map, a specific part of each transaction made in the ecosystem is burned. Thus, the goal is for the value of the token to continue to increase in the long term.

There may be unexpected increases in Akita Inu (AKITA)

Akita Inu (AKITA), which has a circulating supply of 100 trillion units, has a daily trading volume of $1 million. Although the high bid made investors hesitate, the project shattered perception. The Akita token is in 3094th place in the market ranking according to CoinMarketCap as of June 24, 2022. When the performance of Akita Inu (AKITA) is examined, buyers can see that it is on a solid price scale.

Akita Inu has lost 90% of its value since its rise on October 30, 2021. However, gradual declines instead of steep declines can be taken as a sign that buyers are clustered at the bottom. Akita Inu is one of the projects with the greatest potential among meme coins in emerging markets, currently trading at $0.00000158.

Extremely fast transactions via Kishu Inu (KISHU)

Persons who are investors in the Kishu Inu (KISHU) project can grant loans to other network users. A certain amount of interest is earned from these loans. In addition, another striking detail of the project is the speed. In the Kishu Inu project, transactions are fast.

The speed of trading and clearing transactions is an important factor in the preference of investors for the project because when considering meme coin projects, it is not possible to come across a project with such an infrastructure. This factor is what stands out from other blockchain networks.

Conclusion

RoboApe (RBA) has proven to have significant income facilities and is an attractive investment. Otherwise, Akita Inu (AKITA) and Kishu Inu (KISHU) are also known for their high income potential, making them sound investment choices. Each of these pieces can be a great option if you are looking for a purchase with good potential.

More information about RoboApe (RBA):

Join the presale: presale.roboape.io/register

Website: roboape.io

Telegram: https://t.me/ROBOAPE_OFFICIAL


Always do proper research when dealing with currency and token presales. The above information does not constitute investment advice from CryptoMode or its team, nor does it reflect the opinions of the website or its staff.

CryptoMode produces high quality content for cryptocurrency companies. To date, we’ve provided brand visibility for dozens of companies, and you can be one of them. All our customers appreciate our value for money ratio. Contact us if you have any questions: [email protected]

None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses incurred while acting on the information provided on this website by its authors or customers. No opinion should be taken at face value, always do your research before making financial commitments.

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What % of annual income do Utah residents spend on rent? https://www.dnz-mladi.com/what-of-annual-income-do-utah-residents-spend-on-rent/ Fri, 24 Jun 2022 17:04:24 +0000 https://www.dnz-mladi.com/what-of-annual-income-do-utah-residents-spend-on-rent/ UTAH (ABC4) – A new study conducted by NiceRX found that Utah was ranked No. 7 in terms of residents spending most of their income on rental fees. Utah residents lose 33.06% of their income in rental fees every year. The study looked at what percentage of average income is spent on childcare, transportation costs, […]]]>

UTAH (ABC4) – A new study conducted by NiceRX found that Utah was ranked No. 7 in terms of residents spending most of their income on rental fees. Utah residents lose 33.06% of their income in rental fees every year.

The study looked at what percentage of average income is spent on childcare, transportation costs, food and drink, and other important cost-of-living factors.

According to research, the annual cost of rent in Utah averages $18,321. As of June 2022, Zip Recruiter reports that the average annual income in Utah is $57,593. The study also found that Utah residents annually spend 12.2% of their income on health insurance and 9.945% on child care.

In terms of nation, the data revealed that Hawaiians spend the largest portion of their income, 49.3%, on rent each year in the United States. Additionally, rent and childcare have proven to be the two most expensive cost-of-living factors in the United States. , costing an average of $45,423 per year when combined, which is more than 46% of average income. Health insurance has proven to be the third most expensive cost-of-living factor in America, with an average annual cost of around $6,500, or more than 10% of average annual income.

To see the full NiceRX study, click here.

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Alberta announces new scholarship for low-income students https://www.dnz-mladi.com/alberta-announces-new-scholarship-for-low-income-students/ Thu, 23 Jun 2022 00:12:00 +0000 https://www.dnz-mladi.com/alberta-announces-new-scholarship-for-low-income-students/ In an effort to meet growing labor market needs with a cohort of new graduating students, the province is launching a financial aid program for low-income students enrolled in what it has identified as “high-demand programs.” “. At a press briefing at Bow Valley College on Wednesday, Higher Education Minister Demetrios Nicolaides said the Alberta […]]]>

In an effort to meet growing labor market needs with a cohort of new graduating students, the province is launching a financial aid program for low-income students enrolled in what it has identified as “high-demand programs.” “.

At a press briefing at Bow Valley College on Wednesday, Higher Education Minister Demetrios Nicolaides said the Alberta government will invest $15 million over the next three years to support the New Beginnings Scholarship. , a one-time, non-refundable financial grant.

“We are indeed opening new doors and creating a level playing field where Albertans have equal access to education and opportunity,” Nicolaides said.

Selected programs

Starting in the 2022-2023 school year, 1,000 students per year will receive financial aid of $5,000 over the next three years.

Recipients will be automatically selected for the scholarship through the province’s student loan and student aid systems.

Eligibility criteria will be based on the student’s family size and income. For example, a single person with no dependents would need to demonstrate an annual income of $33,000 or less to qualify, but a family of four would need to demonstrate a household income of $66,000 or less to qualify, Nicolaides said. .

The scholarship will be made available to students enrolled in programs such as energy, technology, aerospace, aviation and finance – sectors in which there are “strong labor market needs”, it said. Nicolaides said.

“To determine which programs the scholarship is available in, we considered labor market data, industry needs, retention rates in the province, and student demand,” he said. he declares.

More challenges for students

Nicole Schmidt, president of the University of Calgary Students’ Union, said while the scholarship is a positive step forward, it is not enough to provide meaningful support to the general student population, given the rise tuition fees and recent overall funding cuts.

“The provincial government has cut $600 million from post-secondary education over the past few years, and a $15 million investment, while much appreciated, is a drop in the ocean,” Schmidt said. .

Schmidt said the university had recently approved proposals to increase tuition for engineering and medical students — the extra costs have been exacerbated by the province’s lack of a student jobs program, which ended in 2019.

Schmidt added that she doesn’t think the scholarship should depend on the type of degree a student chooses to pursue.

“If a student is accepted into a program and demonstrates financial need, what they choose to study should not be a barrier or factor in receiving funding,” Schmidt said.

“It is disappointing to see the government picking winners and losers by only making students and certain programs eligible for this funding despite financial need.”

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Nestlé’s finance revenue of N4 billion pushes profit to N18 billion in Q1 https://www.dnz-mladi.com/nestles-finance-revenue-of-n4-billion-pushes-profit-to-n18-billion-in-q1/ Mon, 20 Jun 2022 16:14:00 +0000 https://www.dnz-mladi.com/nestles-finance-revenue-of-n4-billion-pushes-profit-to-n18-billion-in-q1/ Nestle Nigeria Plc achieved a strong financial income of nearly N4 billion in the first quarter, which helped boost the company’s profit by 45% to around N18 billion. The profit figure represents 45% of the N40 billion annual profit the company recorded at the end of the 2021 financial year. The company’s first quarter interim […]]]>

Nestle Nigeria Plc achieved a strong financial income of nearly N4 billion in the first quarter, which helped boost the company’s profit by 45% to around N18 billion. The profit figure represents 45% of the N40 billion annual profit the company recorded at the end of the 2021 financial year.

The company’s first quarter interim report at the end of March 2022 shows a combination of growing revenues and slowing costs that define a promising year for the food and beverage company. The developments appear to have set the stage for a recovery in the business this year from last year, when earnings closed flat.

Nestlé is experiencing the first reasonable profit improvement in three years and is still on track to recover from a 14% profit decline in 2020. This year’s recovery is driven by accelerating revenue. business and profit margin recovery.

With an accelerated 26% increase in sales to more than 110 billion naira in the first quarter, Nestlé can look forward to the strongest sales growth in recent years this year. Revenue is accelerating from the 22.6% improvement in 2021 to N352 billion.

The profit margin climbed to 16.3% in the first quarter – the company’s best performance in six years. Last year, its profit margin fell from nearly 14% in the previous fiscal year to around 11%.

A robust financial income of 3.8 billion naira in the first quarter came as a windfall compared to an insignificant figure of 123 million naira in the same period in 2021. This caused a big change in the cost-income balance of the business from a net finance cost of N1.3 billion to a net finance income of N1.4 billion over the reporting period.

Despite robust financial revenues, the challenge of rapidly growing financial expenditures remains. The cost of funding increased by 65% ​​to N2.4 billion in the first quarter.

The increase in debts on the balance sheet explains the increase in the company’s financial charges. Nestlé’s borrowing increased from 40 billion naira at the end of 2020 to 77 billion naira at the end of 2021, reaching around 84 billion naira at the end of the first quarter.

Cost savings on expense lines that hampered profit improvement in 2021 are also supporting the profit margin gain and profit improvement in the first quarter. The change in position from net financial expense to revenue is the biggest positive move in cost savings. In the previous year, net finance charges jumped 173% to over N12 billion and consumed a significantly increased share of operating profit.

Additionally, administrative expenses provided one of the largest cost savings for Nestlé in the first quarter. Administrative costs fell 21% to N2.6 billion in the first quarter.

Similarly, input costs, which were a major constraining factor last year, moderated in the first quarter. At 67 billion naira for the first quarter, cost of sales rose 27.6% year-on-year, slightly ahead of the 26% increase in revenue over the same period.

This compares to the prior year when input costs rose before revenue to 31% at year end from 22.6%. Compared to the previous year, cost of sales claimed a reduced proportion of revenue in the first quarter at 60.8% compared to 62.5% at the end of last year.

However, marketing/distribution spending shows no signs of slowing down. The expense line continues to grow ahead of revenue by 28% to over N14 billion in the first quarter against a 26% increase in sales.

Despite the impacts of cost of sales and marketing/distribution expenses increasing more than revenue, gross profit still improved by 24.5% to N43 billion in the first quarter.

A boost came from cost savings from lower administrative expenses, which increased operating profit by 30% to N26.4 billion at the end of the period. This is a strong acceleration from a less than 12% increase in operating profit in 2021.

The influx of net financial income provided the most important growth feature which boosted net income growth to 45% for the first quarter.

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“I feel bad about taking most of his income from him”: I earn twice what my boyfriend earns. He pays me $300 in rent, but I want him to pay $800. Is it right? https://www.dnz-mladi.com/i-feel-bad-about-taking-most-of-his-income-from-him-i-earn-twice-what-my-boyfriend-earns-he-pays-me-300-in-rent-but-i-want-him-to-pay-800-is-it-right/ Fri, 17 Jun 2022 16:43:00 +0000 https://www.dnz-mladi.com/i-feel-bad-about-taking-most-of-his-income-from-him-i-earn-twice-what-my-boyfriend-earns-he-pays-me-300-in-rent-but-i-want-him-to-pay-800-is-it-right/ Dear Quentin, My boyfriend and I have been together for seven years, and during that time I bought a house. I used my own savings and spent about $10,000 on renovations. My house is a three bedroom family home and the tenants cover most of my mortgage. I still have other bills, two cars, insurance, […]]]>
Dear Quentin,

My boyfriend and I have been together for seven years, and during that time I bought a house. I used my own savings and spent about $10,000 on renovations. My house is a three bedroom family home and the tenants cover most of my mortgage. I still have other bills, two cars, insurance, utilities, cell phones, etc.

I have both cars in my name; my boyfriend works to pay for one. He pays the $300 car bill and insurance, and gives me $300 for “rent.”

I feel like he should pay me more, but he feels like he is helping enough and shouldn’t have to pay more because the tenants are covering the mortgage. I tried to explain to him that I have more expenses as a landlord than just a mortgage, but he doesn’t seem to understand.

“He’s terrible at saving money and constantly between jobs.”

We keep having the same argument that he’s “saving to buy a house”. However, it’s terrible at saving money and constantly between jobs (that’s its own problem). Although he is not good with money and finds it difficult to keep a job, he has always paid his half even if it is not much.

I think $800 a month is a good deal to get all his bills paid plus car and insurance; he disagrees and wants to continue paying only $300. I make at least double what my boyfriend makes, so it’s not like I need the money. I just think it’s fair that he pays his share.

I feel bad about taking most of his income, but I feel like I can invest it better than him. What do you think is fair?

hard working girlfriend

Dear hard worker,

We could discuss what would happen if you were married or if the gender roles were reversed, but at the end of the day, you have the right to ask your boyfriend to pay fair rent or rent over $300. one month but still lower than the market rate. In many housing markets right now, $800 is a bargain.

Here’s the takeaway: you don’t have to justify why you’d want him to pay more than most people pay on an average cable bill ($217) and electric bill ($115 $) combined for the average US household, with an Amazon Prime AMZN,
+2.47%
or Netflix NFLX,
+1.25%
subscription launched.

“You don’t want to be a facilitator and foster a culture of job change and long periods between work commitments.”

Likewise, your boyfriend’s reluctance or inability to hold down a job shouldn’t be a factor in his choice not to live in the adult world. You’re not his mom, or a friend giving him a couch to sit on while he gets his finances in order. You are his partner. He should be ready to pay his share.

I’m writing this assuming you took out the loan on two cars because your boyfriend’s credit score wasn’t good enough for him to take out his own car loan. He therefore reimburses a car that is technically in your name, but the car will be transferred to him once the final payment has been made.

Compare your respective income and expenses, and the market rent for your neighborhood. Of course, you can take into account that you share a room (and a house). I might suggest $500 if your other tenants are paying $800, but the only number you should settle on is whatever you’re comfortable with.

You want to be supportive, but you also don’t want to be a facilitator and foster a culture of job change and long periods between work commitments. If you didn’t offer him a house to live in at $300 a month, he would have to find his own way in the real world and become a more reliable and responsible employee.

The biggest issue is whether you two are right for each other. If he is now showing signs that he is leaning on you financially and making you feel guilty by accepting a token rent payment, it will only get worse as your relationship continues to develop. What’s right in the real world and in your boyfriend’s world can be two very different things.

Discover Moneyist’s private Facebook group, where we seek answers to life’s trickiest money problems. Readers write to me with all sorts of dilemmas. Ask your questions, tell me what you want to know more or weigh in on the latest Moneyist columns.

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By emailing your questions, you agree to have them published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties..

Four other Moneyists:

‘These are not my ideal living conditions’: My husband and I live in his mother’s house. She will leave it to him when he dies. Do I have a right to this house?

“I missed the bitcoin bus, but now I feel like my time has come. I still have 25 years of a boring 9am-5pm job. Is the crypto crash an opportunity for buy low?

“No sibling wants to pony up the money”: My dad owns a family home with 3 siblings. He spent $100,000 on renovations. Can he force them to sell?

My in-laws sold their house and bought an RV. They have $200,000 in the bank. How can they avoid having their assets used for nursing home expenses?

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Tiny Homes save up to 25% of monthly income https://www.dnz-mladi.com/tiny-homes-save-up-to-25-of-monthly-income/ Wed, 15 Jun 2022 23:29:44 +0000 https://www.dnz-mladi.com/tiny-homes-save-up-to-25-of-monthly-income/ TALLAHASSEE, Fl. (WTXL) — Kierra, “Yeah, it’s nice to be able to pay my bills.” Kierra is a resident of Tiny Home Community, The Dwellings. She has lived in this neighborhood for 4 years. She stays in what is considered an “average” small house of about 290 square feet. She thinks the move to a […]]]>

TALLAHASSEE, Fl. (WTXL) — Kierra, “Yeah, it’s nice to be able to pay my bills.”

Kierra is a resident of Tiny Home Community, The Dwellings. She has lived in this neighborhood for 4 years. She stays in what is considered an “average” small house of about 290 square feet. She thinks the move to a small house was a no-brainer. At The Dwellings, everything is included in the monthly rent. Things like internet, cable, water, and more.

“I’m saving at least 25% of what I used to spend to live in a regular apartment,” says Kierra.

Experienced real estate agent Kenley Stringer doesn’t believe a profitable life is the only factor pushing millennials into smaller homes.

Stringer says, “Our average household size is down from two generations ago. Millennials marry later, they are less likely to have as many children. So if your average household size is smaller, our appliances/appliances are smaller and we can get by with less. »

Although there are multiple reasons why the transition to lower cost housing still plays a role. Maintaining an ordinary home can be a problem that many people cannot maintain.

Stringer says, “Typically, you’re going to be paying a few percentage points a year of your home’s value in insurance and taxes, and then your maintenance costs are on top of that.”

With home maintenance and construction costs on the rise, it just makes sense to stick to the necessities.

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Revenue Sharing: How to Invest for Postage Credits – Sara Allen https://www.dnz-mladi.com/revenue-sharing-how-to-invest-for-postage-credits-sara-allen/ Tue, 14 Jun 2022 01:38:42 +0000 https://www.dnz-mladi.com/revenue-sharing-how-to-invest-for-postage-credits-sara-allen/ Unusually in the world of Australian financial terminology, the words ‘franking credits’ and ‘fully franked dividends’ carry emotion. It’s a concept that can kill electoral hopes, let alone fuel revenue dreams. More than half of the companies listed on the S&P/ASX 200 pay fully or partially franked dividends. So what are franked dividends and why […]]]>

Unusually in the world of Australian financial terminology, the words ‘franking credits’ and ‘fully franked dividends’ carry emotion. It’s a concept that can kill electoral hopes, let alone fuel revenue dreams. More than half of the companies listed on the S&P/ASX 200 pay fully or partially franked dividends. So what are franked dividends and why do investors want to invest in companies that offer them?

What are franking credits and franked dividends?

A frank dividend is when a company pays out its after-tax income to investors with a tax credit. Regarding the timing of taxes, the investor only has to pay tax on this dividend to the extent that his own marginal tax rate exceeds the rate of tax the company has already paid on this income. of dividends. If their marginal tax rate is lower, the investor may be able to claim a tax refund.

The idea is that the same income is not taxed twice.

Sound clear as mud? The following example from Dr. Don Hamson, Managing Director, and Dr. Peter Gardner, Senior Portfolio Manager at Plato Investment Management can help illustrate what this means in practice.

If a company makes a pre-tax profit of $100 million, it pays the corporate tax rate of 30%, or $30 million. That leaves $70 million in after-tax profits. If this company pays a dividend of $70 million, equal to its profits, there will be a tax credit of $30 million if it is paid as a fully franked dividend – because the company has already paid $30 million tax dollars.

Example of how franking credits would apply to an investor at the top marginal tax rate of 47%. Source: Australian Taxation Office (ATO), June 2022.

Why zero-tax investors love franking credits

Where things get really interesting is for investors with non-taxable income like charities or retirees with superannuation balances under $1.7 million. These investors can actually use the Franking Credits to receive a refund in addition to the dividend paid. So, in the previous example of the $70 dividend with a $30 franking credit, a zero-tax investor would receive a $30 tax refund.

For zero-tax investors, franking credits are (with the exception of certain reductions in the time value of money, because franking credits are only refunded when an investor completes their tax return) almost as valuable as cash dividends. Thus, they should represent a large portion of a zero-tax investor’s income and total return. Hamson & Gardner

Although a few countries offer postage credits, Australia is the only country to offer refunds for unused portions of credits.

Hamson and Gardner think that is unlikely to change anytime soon either, although they suggest some changes to the pension plan that are less generous for wealthy investors could come in time. This was a major factor in the Australian Labor Party’s loss in the 2019 federal election, with many pensioners concerned about the impact on their after-tax income. None of Australia’s major parties have proposed any changes to the postage credit scheme since.

To really demonstrate the value of franking credits in Australia, the table below from Plato Investment Management shows the after-tax value of $1 of pre-tax income for different types of investors.

(Click on the image to enlarge)

The after-tax value of $1 of pre-tax income.  Source: Plato Investment Management
The after-tax value of $1 of pre-tax income. Source: Plato Investment Management

The Franc Dividend Landscape in Australia

Not all companies pay dividends, let alone franked dividends. There are 91 companies listed in the S&P/ASX 200 Index that pay fully franked dividends as of June 1, 2022. Some well-known examples include Commonwealth Bank Australia (ASX code: CBA), BHP (ASX code: BHP) and Wesfarmers ( ASX code: WE).

If a dividend is partially franked, it means that the company paying it has only paid part of the tax and the investor pays the remaining part if applicable. One reason a business may do this is if part of the business’s income was generated in other countries, meaning tax was paid in those countries instead. Some examples of companies in this situation are CSL ltd (ASX code: CSL) and Computershare (ASX code: CPU).

The number of companies offering fully franked dividends has remained largely constant over time.

The number of dividend paying companies in Australia.  Source: Platon Investment Management.
The number of dividend paying companies in Australia. Source: Platon Investment Management.

Australia has also entered into an agreement with New Zealand called the Trans-Tasman Imputation Measures allowing New Zealand companies operating in Australia and paying Australian tax to offer postage credits if they choose to participate.

There are a range of reasons why an ASX-listed company might not pay franked dividends. One of the reasons may be that they are domiciled overseas for tax purposes and therefore do not pay Australian tax.

Franking credits obviously appeal to investors, but they also appeal to companies because they are fiscally advantageous and encourage investment.

Investing for franked dividends

A good tip for any investor focused on a stream of dividend income – not to mention franking credits – is to consider the sustainability of dividends. By that, I mean, can the company afford to continue paying the dividends it has paid in the past and is there consistency in the value of those dividends.

Hamson and Gardner have generally found that companies in more defensive and less cyclical sectors offer more sustainable dividends, such as in consumer staples like Woolworth (ASX code: WOW) or Coles (ASX code: COL). They also consider electronics to have become a consumer staple rather than its historical categorization as consumer discretionary.

Investors should be wary of focusing only on the highest dividends – for some companies, a lower franked dividend can be a sustainable strategy and just as worthy of being part of an income stream.

It should be noted that even companies offering smaller franked dividends can be worth incorporating while still being sustainable. Off-market redemptions can also be a source of franking credits as excess credits are distributed to investors through these arrangements.

Shares

Over 66% of dividends in 2022 expected to come from just 7 stocks

Begin

There are several ways to research investments with franked dividends. Managed investments such as actively managed funds or passive ETFs may offer franking credits on distributions based on their holdings or investors can look to Australian listed companies that offer franking credits.

You can discover a range of investments here.

Frequently Asked Questions

What are franking credits and franked dividends?

A frank dividend is when a company pays out its after-tax income to investors with a tax credit. The tax credit is known as the franking credit and the investor can use it as a credit on their taxes.

Are postage credits and charge credits the same?

The terms postage credits and charge-off credits are interchangeable. The system of franking credits and dividends is known as the imputation system. When we talk about imputation credits or franking credits, it refers to the fact that companies have passed on tax credits to investors that they can use to offset their tax returns.

How are postage credits calculated?

Postage credits are calculated using the equation below.

Franking equity = (dividend amount / (1-corporate tax rate)) – dividend amount.

How do I use postage credits on my tax return?

For the latest guide as well as the current marginal tax rate, please see the ATO website here.

How do I know if my investments offer franked income?

One of the easiest ways to find out is to look at your annual investment reports, which should show total income, including amounts with franking credits attached. You can also contact the issuer of any managed investments you hold to discuss any holdings they hold that may qualify for clearance. For direct actions, examining historical behavior can be a useful indicator.

This article is part of our new series of investing guides. If there’s a topic you’d like to discuss next, please leave a comment below.

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Here’s How Much I Earned in REIT Dividend Income Last Year https://www.dnz-mladi.com/heres-how-much-i-earned-in-reit-dividend-income-last-year/ Sun, 12 Jun 2022 12:16:00 +0000 https://www.dnz-mladi.com/heres-how-much-i-earned-in-reit-dividend-income-last-year/ I still remember receiving my first dividend almost 20 years ago. I was still in graduate school and just beginning my journey as an investor. I had followed the advice of the famous investor Peter Lynch in his book One Up on Wall Street by investing in companies that I knew. This led me to […]]]>

I still remember receiving my first dividend almost 20 years ago. I was still in graduate school and just beginning my journey as an investor. I had followed the advice of the famous investor Peter Lynch in his book One Up on Wall Street by investing in companies that I knew. This led me to buy shares of a consumer products giant Procter & Gamble, which happened to pay a dividend. Even though that first dividend payment wasn’t much more than a dollar, I loved the idea of ​​receiving income that I didn’t have to earn working.

Because of that, I’ve filled my portfolio with dividend-paying stocks over the years. It has helped me steadily increase my passive income. Last year, I hit a milestone when I crossed the $10,000 threshold of dividend income. One of the biggest contributors to my passive income was real estate investment trusts (REITs), to just under a third of my dividend income. Here’s a look at some of the REITs that stood out as major revenue generators for me last year.

Provide a healthy dose of income to my portfolio

The REIT leading the charge in providing me with the most passive income was Medical Properties Trust (NYSE:MPW), over $500. The Healthcare REITs focuses on owning hospitals that it leases to health systems. This strategy has paid big dividends to investors over the years, allowing Medical Properties Trust to increase its payout for nine consecutive years.

This dividend growth is one of the reasons the REIT was such a big contributor to my passive income last year. It has provided me with more income every year without lifting a finger, which is as passive as it gets. However, I took an active role in increasing my REIT income by purchasing a few additional shares last summer. It was one of many purchases I have made since adding Medical Properties Trust to my portfolio in 2007.

The REIT will undoubtedly provide me with more income in 2022. Medical Properties Trust has already increased its dividend this year. Meanwhile, I bought a few more shares a few months ago. It remains one of my favorite REITs for collecting passive income.

Sometimes money grows on trees

Another big revenue generator for me last year was Weyerhaeuser (NYSE:WY). The Timberland REIT paid me just over $200 in dividends.

One of the reasons this REIT was a big contributor in 2021 is that it changed its dividend policy the year before. Weyerhaeuser has a unique framework in the sector. It pays a sustainable fixed quarterly dividend and an additional variable annual dividend to achieve its objective dividend distribution rate from 75% to 80% of its funds available for distribution (ADF). Weyerhaeuser established this policy due to the volatility of lumber prices.

Last year, lumber prices were high. For this reason, Weyerhaeuser paid an additional interim dividend before the end of the year to accompany its quarterly payments.

Meanwhile, I have already received more dividends from Weyerhaeuser in 2022 than last year. The company paid a large final variable supplemental dividend at the start of the year, thanks to the sharp increase in its FAD due to rising timber prices. Additionally, Weyerhaeuser increased its fixed-base quarterly dividend payout by 5.9%. While the REIT’s variable dividend policy means I can’t always count on it being a big revenue producer, it does provide upside revenue when lumber prices are high.

Strong dividend growth

The final REIT I wanted to highlight is American tower (NYSE: AMT). Although it wasn’t my third dividend-paying REIT, it still stood out for the income it produced at over $100. Most of those dividends came from an investment of about $1,000 I made in the stock about a decade ago. I am now earning a return of over 8% on that cost, even though the REIT has never offered a high dividend yield.

The driving factor was American Tower’s impressive dividend growth. The Infrastructure REITs has increased its payout at an annual rate of more than 20% over the past decade. This helped grow what was a relatively small dividend when I originally bought stocks into a much more meaningful passive income stream.

Earning passive income from real estate made easy

I have found REITs to be a great place to collect dividend income. They own income-producing real estate, which gives them the cash to pay out attractive and growing dividends. This is why I own several REITs that provide me with a significant amount of passive income. Although I can’t retire with my REIT income just yet, it increases every year as these companies increase their payouts and I increase my REIT collection.

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Matthew DiLallo holds positions at American Tower, Medical Properties Trust and Weyerhaeuser. The Motley Fool fills positions and recommends American Tower. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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