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.
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.
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.
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
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).
wow this post aged so well.
Back in Aug 2022, you could’ve bought Swiss Re stock at 75 CHF @ 8% dividend.
Now it’s 135 CHF and still pays the same dividend. 100% appreciation in 3 years plus about 20% in dividends.
Too bad I didn’t dare to step in at the time (Hi Cpt Hindsight! )
by the way, few months back I also did a screening with SimplyWallSt with similar criteria as yours - and ended up buying few chips of some of the stocks in the list above…
Partially related question: I’ve read in some other post that in the meanwhile you have also taken the FastGraphs subscription (thanks to our evangelist @Your_Full_Name).
FG is way more useful. SWS seems to be fully automated and sometimes they come to the wrong conclusions about their own metrics (for mergers or one-off writeoffs). FG is laser focused on Fair Value which seems to work better.
Unfortunately SIX is not quoted.
Yes, partly because we’re splitting the FG bill with some friends, and SWS grandfathered me at half the current prices, so it’s not too bad altogether (~100 CHF pa.).
What a pity—I’ll stick with SWSt then, as I’m currently focusing primarily on Swiss securities for diversification, dividends, and cash flow purposes (in view of a FIRE target that keeps drifting further away… ).
My SWSt subscription is up for renewal in March 2026; maybe FG will have included SIX by then …
They are, but you need an international FG subscription ($++).
Baloise and Helvetia are about to merge, aren’t they? Not sure what happens to the dividend afterwards. Probably into the pockets of the capable new management or so …
Personally, I don’t like most of them for different reasons, but gun to my head and I’d buy Holcim of the bunch (for fundamentals, and because ESG now seems like the fad it always was.
Oerlikon seems like the saddest of the bunch even though I like the name the best.
Stock picking by how-much-I-like-the-company-name? Should be an ETF, no?!?
Thank you for this info (and for the charts, by the way).
I couldn’t find the extra cost of this subscription on their website. While googling, I came across their launch video on YouTube, where they mention (in a reply to a comment) that the additional cost is $10/month or $100/year. Is that correct?
Do you find the option to upgrade in your account settings? Also, are there any other upgrades available to the ‘basic’ plan, besides this one (not considering ‘premium’ as an upgrade)?
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