Question 1: What’s the easiest way to invest in the FAANG stocks?
Answer: It is actually very easy to open an international share trading account with CommSec, nabtrade, CMC or others and buy them directly.
If you don’t want to do this, buy the locally listed ETF (exchange traded fund) FANG from ETF Securities. It tracks what is called the FANG+ index – an equally weighted index of 10 stocks including the 5 FAANG stocks. The current composition is: Twitter, Alibaba, Facebook, Amazon, Alphabet, Nvidia, Apple, Baidu, Netflix and Tesla.
Question 2: Is ANZ’s final dividend of 35 cents fully franked? If I want to take shares under the dividend re-investment plan (DRP), is it too late?
Answer: ANZ’s final dividend of 35 cents is fully franked. This takes the full year payout to 60 cents per share. Pre Covid-19, the ANZ had advised shareholders to expect dividends to be only 70% franked – but because the payments are so low this year, they will pay sufficient Australian tax to fully frank their dividends. Next year, when dividends should be a lot higher, they will probably be partially franked.
If you want to take shares under the DRP rather than the cash, you have until 5pm on 11 November to make your election (contact the share registry). Shares will be issued without any discount, with the price determined over a measurement period of 13 November to 26 November. ANZ shares go ex-dividend on Monday 9 November, so you must own them as at close of business on Friday 6 November.
Question 3: What’s your opinion of Bitcoin form of investment?
Answer: I am no Bitcoin expert. That said, it seems to be here to stay. It had a very strong month, getting back over US$14,000, trading today around US$13,270. Weakness in the US dollar is one of the driving forces (like Gold). Still a long way short of its record high near US$20,000. I wouldn’t venture an opinion about where it is heading, but I would opine that at some stage, Central Banks and/or Governments will regulate digital currencies.
Question 4: What’s the reason for the recent decline in the share price of Event Hospitality and Entertainment (EVT)? At approximately $8.97 per share, is it worthwhile to buy or add this to one’s portfolio?.
Answer: Event Hospitality & Entertainment (EVH) has been hard hit by the pandemic with its cinemas, hotels and ski field (Thredbo) facing tough conditions. Cinemas have also been impacted by the absence of blockbusters. A more recent challenge has been the failure to close the sale of its German business (Cinestar), which is putting pressure on the balance sheet.
According to the two analysts who cover it, not a lot of upside is seen – a target price of $9.25 compared to the last ASX price of $8.62. I guess it is a “re-opening trade” – but not one that many are talking about.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.