I have NIB shares valued at around $2200, which I received during my time as a member. I’ve had them for a while, as I’m sure many people had.
I’m not strapped for cash, but feel that $2200 might be better off with me in my offset account than waiting for the shares to pick up.
I’m not a savvy investor at all. So no idea of the best answer. Be kind please!
Hold or sell??!
The share price and dividends paid out over the last 10 years has generally trended higher.
Current dividend gross yield is about 5.4%.
The business has strong tailwinds behind it with the growing population in Australia.
The company and management has proven to be competent based on previous performance.
As you already own it, for me this would be a long term hold.
If you sell you would have to pay capital gains tax, so that $2200 would be less (based on your current marginal tax rate less CGT discount).
https://www.marketindex.com.au/asx/nhf
If OP wanted a chatGPT response he would of went online and did it
If OP wants to ask ChapGPT all he needs to do is ask a question here. Would you prefer I hid the origin of the answer and pretended I found The Motley Fool article on my own?
Let it ride. Collect dividends along the way.
hodl all the way
Sell reinvest.
Less paper work
Generally speaking, you don’t sell when it is at the dip. The way i look at it is will i be better off in a years time based on a number of assumptions.
$2200 in your offset of say 5% mortgage saves you about $120 a year in interest (tax free)
Assume you have ~300 NIB shares, and they are giving out 20c/share of dividend over next twelve months. You will get $60 before tax income, or about $40 after tax.
So the guess here is if the share will rise to give you more than $120 - $40 = $80 capital gain (after CGT). Round up to say $100 increase in share value
… $2200 might be better … in my offset account than waiting for the shares to pick up.
So if it is me, I’ll be asking myself can i wait for share price to go up by $100/300 = 34c in a years time
Seems like a small parcel of shares and probably not worth the effort in terms of record keeping and tax. I’d either invest more if you believe in the company or cash out if unsure.
The net difference in yield/growth compared to your offset account is probably small, so can’t go too wrong either way
For info, to help with calculations, if you received your shares through the NIB demutualisation in 2007 your cost base was $0.85, then $0.689+.
just hodl