High dividend (Swiss ?) stocks portfolio

Investing / Portfolios
#1

I found nothing in search, but am thinking about a “Swiss Dividend Portfolio” to keep instead of CHF cash that’s lying around (and for those that don’t want to “invest in the stock market” - like spouses and parents).

Is there already something like this? Anything better than Swiss High Yield ETF from iShares (SWX:CHDVD)? Is there an accumulating version of CHDVD maybe?

I did a search with SimplyWallSt and this is the list that came back (1b+ market cap, stable dividend 4%+):

  • Holcim (4.9%)
  • Julius Bär (5.18%)
  • Baloise (4.55%)
  • Helvetia (4.99%)
  • Vontobel Holding (4.9%)
  • Allreal Holding (4.43%)
  • OC Oerlikon (4.6%)
  • Mobimo Holding (4.08%)
  • Valiant Holding (5.58%)
  • Vaudoise (4.41%)

This should give a rather comfy 4.5% gross (~3.6% net) dividend yield, which is way better than CHF cash lying around. Yes I’m aware that equities are not the same risk class. :slight_smile:

Any thoughts?

Mustachian portfolios
#3

You said it yourself. What is your use case?

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#4

I stated it above. For people who are “afraid to invest” but have too much money on their hands, this could give a fire-and-forget scenario that distributes income and you don’t need to ever sell.

I know there is a catch as it compounds

  • Switzerland risk (albeit very low)
  • CHF risk (mostly positive now)
  • taxation risk (not expecting to change)
  • dividend risk (even though these are stable companies, they might shake in a real bear market)
  • money is still invested in equities

but it could be a different spin on the same topic. You get more money for your money + you don’t need to sell ever - you can buy cheaper if the market keeps dropping.

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#5

ETFs rebalance for much less cost than what you could achieve personally with stock picking.

#6
#8

Why should people who are afraid of investing, do exactly that, investing?

How is that different than investing in e.g. VWRL?

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#10
#11

I would argue this one.
As long as these are established mature companies (and most swiss bluechips are), their primary reason to exist is to return value to shareholders.

I understand that dividends come with taxation vs zero capital gains tax, but there’s only so much you can grow if you are Novartis for example. A bluechip might also better survive in a downtrend + it generates extra revenue what normal smallcap growth usually does not do.

#12

the direct yield you get minus the currency exposure?

#14

What do you mean with this? VWRL distributes dividends as well.

Most of the Swiss blue chips generate the largest part of their revenue outside of Switzerland, so not in CHF, they are just denominated in CHF. Take Néstle for example, less than 2% of their sales are in Switzerland

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#15

I’m relatively easy if companies like SwissRe do not grow significantly or reach into a new venture area every 6 months, but just pay the 8% dividend they are supposed to be paying. (alas, with the case of SwissRe it’s unsustainable, but you get my idea).

#17

The relevant video on the topic of preference for dividend stocks:

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