Why Your ASX 200 Returns Will Be Bad

What are the common pitfalls that can negatively impact your returns from the ASX 200? The failure to reinvest dividends and franking credits. Many investors overlook the significant role that franking credits play in boosting returns, especially in a dividend-rich market like Australia.

Chapters
00:00 Introduction to ASX 200 and Franking Credits
00:36 The Dividend Myth Explained
02:02 Analyzing Real ASX 200 Data
04:42 Muggle Math vs. Real Return Calculation
08:13 Understanding the Snowball Effect
12:00 Franking Credits and Their True Impact
15:36 Maximizing Returns: Strategies and Comparisons

[SebastianStJames]

Do you reinvest your dividends, and if so, how do you do it?

[MrSteveoc]

Hi SSJ - welcome back we have missed you. That was indeed very enlightening. Thank you for your high quality productions and your unique research and presentation.

I do reinvest my dividends but now fully understand the franking credits and will be reinvesting those as well. I do have one or two ETFs that don’t have a dividend reinvestment Scheme so I will also now be taking those payments and reinvesting. Great research. Steve

[lengerer]

I’m using debt recycling strategy. Dividends are paying down my PPOR and the interest on the LOC used for the div etf is tax deductible. Works for me.

[ryanbentley]

Hi Sebastian, You are the knock out artist of share trading info.
Love every facet of your videos and can't wait to see what your next one is!!

[kevinquinn]

So if I'm over 60, started an Account Based Pension in my super fund and reinvest my dividends, I'm on my way to Dividend Heaven.

[AussieZeKieL]

I’d love to see a ftse rafi index comparison of Asx200 and s&p500 vs market weight vs equal weighted.

[bradwest]

Great video SSJ.
As an uneducated Australian investor and wanting to learn more. Do you have a video teaching more about whether to buys ETF's through someone like Vanguard vs buying shares directly into the top 10 Australian companies on the ASX200 through someone like Commsec? I understand if you buy ETF'S, they own the shares and is there more risk associated with that?

[meredithjohns]

Hi Sebastian, will you please convince me to buy VAS over IVV or NDQ or at least VAS in addition to these? :)

[low-profile-dude]

I spend my dividends so should I sell my shares and put the money in ing. I would have certainty but no potential capital growth?

[mattrt]

Hi SSjJ....I've run out of franking credits and 3% discount woolies vouchers :-). Just wondering how do you across your protfolio reinvest your dividends + cash equiv of franking credits earned. The lay person in me has all DRP turned on for the 5 etf's i have, but how do i know how much to put back in based on your great theory in franking credits? i would as said slip you a metro or woolies fuel voucher if my question can be upped 🙂

[jermunitz]

If share buy-backs were called "tax free dividends" they'd be so cool.

[jamiehx]

I learnt all my investing skills from gnomes in southpark. Phase 1: Collect underpants, Phase 2 ?, Phase 3: Profit. Can you help me figure out what Phase 2 was? The gnomes never fully explained Phase 2

[jnpjnp]

HI Sebastian- what AI app do you use, great AI work! 😊😊😊

[kimeccleston]

So far this week has not started well.