Portfolio Four Updated March 2012

Portfolio four has 2 1/2 years of history. The beneficiary has contributed $1500 and the trustee has contributed $3000 for a total of $4500.

Today the portfolio is worth $4925 for a gain of $425, or 9.5% or about 4.5% / year over the life of the portfolio.

When stocks have unrealized or realized gains plus dividends of over $200 I mark them “green”, and when they have unrealized losses minus dividends of over $200 I mark them “red”. Right now there is nothing green or red in this portfolio.

Nucor (NUE) is a well run non unionized steel company with a rising dividend. Unfortunately steel companies are very dependent on the economic recovery and NUE is still below where we bought it. Since it is a well run company with a rising dividend we are holding on to it.

Statoil (STO) and Westpac Banking (WBK) are both foreign ADR’s, one from Norway and one from Australia. They are both denominated in non US currencies so if the US dollar falls they will rise in value. They too are both doing well so far in the limited time we’ve owned them.

This portfolio hasn’t had any “sells” yet (just buys) so taxes are simple, just dividends and a tiny amount of interest income (a few cents). There were no foreign taxes withheld because Australia (Westpac) doesn’t withhold on US dividends, although Statoil (STO) will when they pay out in May 2013.

Update – what is interesting is that the article I linked to previously showed Australia withholding at 30%. However, there were no taxes withheld on Westpac (WBK). I started doing some research and it was hard to figure out if their tax treaty with the US meant that there was an exception to the usual 30% withholding, it wasn’t clear, but I assume that my brokerage firm knows what they are doing. Foreign withholding is an area of interest to me so I will try to research it some more as time allows. For now my brokerage firm is not withholding on WBK.

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