First time Dividend stock investor

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  maiuspala on 30/10/2018 - 19:19

  +2

  The cheapest broker i have found is selfwealth, with 9.5 per trade.

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  John Kimble on 30/10/2018 - 19:26

  +4

  Is this your second account, unistudent1?

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  Doggiie on 30/10/2018 - 19:27

  1. Yes, but you can't expect it to be the same price you bought it at. There can be times when no one wants to buy it if you're not willing to sell it for low enough or no one wants it (but market makers exist to keep the market liquid).
  2. SelfWealth. Feel free to ask for a referral code.
  3. Depends on stock. Do your research. Most stocks would do annually, biannually, or quarterly. Some ETFs do monthly.
  4. CMC Markets provides a platform. Be careful of the ownership rules for overseas stocks (I am not qualified to give my thoughts on this).
  5. Dividends + imputation credits go on top of your current income. Capital gains/losses are only realised when sold.
  6. How long is a piece of string? Depends on your commitments, salary, and risk profile.

  Good luck as the hardest part in investing is starting off, because there's a lot to take in! Feel free to shoot some other questions for more unqualified OzBargain advice!

  • 

    pjetson on 30/10/2018 - 22:23

    +1

    I am not qualified to give my thoughts

    If you're not qualified to give your thoughts, who is?

    I can't imagine how anyone else is qualified to give your thoughts.

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  gimli on 30/10/2018 - 20:43

  Maybe read a few books about stock market. Look at webinars on ASX.

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  mayday1984 on 30/10/2018 - 21:19

  Thanks guys for the inputs I am learning a lot on this new topic for me.

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  EightImmortals on 31/10/2018 - 08:20

  +2

  "If I bought a stock, will I be able to get my money back anytime by simply selling it? Is it possible to not recover my money if no one wants to buy?"

  Yes. Yes. In theory all markets operate on the priciple of supply and demand (except the housing market which operates on the amount (or lack of) credit). Therefore if you have NO buyers then you cannot be a seller. :)

  "Can anyone recommend an online broker and do they cost anything such as taking a cut?"

  There's heaps to choose from and they will all take commission when you buy/sell. Just do a google search on 'best Australian online broker' and start reading through the candidates until you find one that suits you. i.e. are you planning to trade or invest? How many trades per month will you be doing? (You might not have figured that out yet, but if you are investing for dividends then you'd want to hold onto your stocks rather than trade them (unless dividend plays are part of your strategy?)

  "Do the payouts happen annually, quarterly or monthly?"

  Depends on the company, I know the Wilson LIC's pay out twice per year and you take the cash or get more shares instead.

  "If I want to invest in American stocks which is a good website to use and will I get taxed?"

  Try Pepperstone? (maybe) yes you will get taxed on REALISED profit, if a stock increases in value but you do not sell the stock then you will not be taxed. Dividends are taxable but most of them are 'franked' anyway, which means that tax has already been paid on them so you wont have to pay extra UNLESS labour gets into power next year as they plan to further the attack on low income earners and self-funded low income retirees by STEALING the money that has been paid on those dividends by not allowing you claim it back as is currently the rule. You can read more about this lowlife connivance here: https://wilsonassetmanagement.com.au/2018/10/30/geoff-wilson…

  "How does the Australian taxation work for money earned from stocks? Does it count towards your income bracket?"

  Yes, but I'm pretty sure that the usual capital gains rules apply, that is, if you have owned the stock for more than 12 months you can reduce the taxable profit by 50% when you sell. But check with your accountant as the rules change all the time. Can;t have the plebs getting ahead now.

  "What is a good amount to invest per year from a starting point? I have heard 10k per year."

  If you are new to trading then my advice is 'slow and steady wins the race'. Trading is 90% psychology and 10 percent knowledge which will make sense to you shortly. But don't treat it like a trip to the casino, research, research and continue to research. There are plenty of stock forums for you to join, hotcopper or topstocks are both Aussie trading sites. Do NOT get suckered into leveraged products like CFD's or you WILL lose you money. Leveraged products are for experienced traders only (IMO).

  Any more questions then please ask.