What are the strange stocks to buy with the new NISA?

If it is a stock, is there a peculiar taste of buying it with NISA? It was schematized based on the merits and demerits of NISA.

Stocks that can be expected to pay dividends and stocks that can be expected to rise in priceThere seems to be a strange investment.

Think about it here!

What you want is① Income gain(dividends)? or② Capital Gains(profit from price increases)?

Long-established companies that are generally well known to everyone have gone through a growth stage and have already matured. It is precisely because we can continue to earn stable profits every year that it is possible to issue dividends as returns to shareholders. suchlikeHigh dividend stocksPrice movements tend to be moderate when compared to growth stocks that are in the process of growth.

MeanwhileGrowth stocksIt is also said that it is possible to aim for capital gains due to large stock price increases accompanied by growth potential. Determining the growth potential of growth stocks and going to pick up big price increases is probably the real thrill of investing in stocks.

The pattern where shares of companies that distribute dividends to shareholders in a stable manner rise in price is also attractive.

What I want to be careful aboutDividends on US stocks purchased through NISA's growth investment facility will be taxed at 10%That's the point.

If it is possible to make an investment decision that seems good considering the increase in the price of the stock itself or the total exchange rate etc. while taking into account the 10% tax on this dividend, it can be said that it is worth investing sufficiently in high-dividend stocks of American stocks.

What kind of image do you get when you actually buy individual stocks with an NISA account?

Please see examples of high dividend stocks and growth stocks, respectively.

Let's take a look at Coca-Cola (KO), which is also the original high-dividend brand, as an example.

The stock price, which was 48 dollars on January 6, 2020, was 58 dollars at the time of closing on November 27, 2023, and has risen 1.2 times in just under 3 years.In the case of US stocks, it is necessary to consider not only rising stock prices, but also exchange rate fluctuations.

In this case, what is the dollar to yen rate compared to the time of purchaseYen depreciates and dollar appreciatesTherefore, the valuation gain is approximately 670,000 yen. If you sell with a taxable account, you will be taxed about 20% (about 140,000 yen) on 670,000 yen. However, if it is an NISA account, the profit from the sale is tax-exempt.

However,Note that, unlike Japanese stocks, US stocks are taxed at 10% on dividends.

In the case study, you can receive dividends 15 times during the period, but 10% tax will be levied on the total dividend amount of approximately $1,225. After 10% tax is levied on $1,225, when calculated at $135 per dollar, approximately 150,000 yen is the dividend after tax.

* Actually, every time a dividend is issued, it is taxed 10% in USD, and when it changes to yen, it is calculated at that rate of exchange.

In this case, when purchasing/selling with an NISA account, it is conceivable that a total of 820,000 yen of profit of about 670,000 yen plus dividends after tax can be received.

And it's about 190,000 yen more than the taxable account (14+5*) It means that it will be profitable.

*Dividends from taxable accounts are double taxed, so the amount before deduction is stated.

If US stocks are purchased with a taxable account, 10% US tax and 20.315% Japanese domestic tax will be levied on dividends. However, in the case of double taxation, it is possible to receive a foreign tax credit by filing a final return.

Let's take a look at the example of Mitsubishi UFJ Financial Group (8306) in Japanese stocks.

The stock price, which was 580 yen on 2020/1/6, was 1,291 yen as of the closing date of 11/28, 2023, and has risen 2.2 times in just under 3 years.

The profit from the sale in this case is approximately 1.2 million yen, but if it were to be sold with a tax account, tax of about 20% (about 240,000 yen) would be levied on 1.2 million yen. However, if it is an NISA account, the profit from the sale is tax-exempt.

Not only that, you can receive dividends 8 times during the holding period in the case, but the total dividend of about 200,000 yen is tax-exempt if you have an NISA account. If it's a taxable account, dividends are also taxed about 20%. In this case, the tax on the 200,000 yen dividend would be 40,000 yen.

In other words, if you buy or sell with an NISA account, it will be approximately 280,000 yen (24+4) cheaper than a taxable account.

In order for a company to pay dividends to investors, it is difficult unless it is an excellent company that makes continuous profits, grows, has enough spare capacity to issue dividends, and maintains financial soundness. Please also keep in mind the risk of corporate dividend cuts.

At the bottom of the Moomoo chartyellow dotsYou can check the amount of dividends by long-pressing and tapping.

Let's take a look at the case of Tesla (TSLA), led by Elon Musk in growth stocks.

The stock price, which was 30 dollars on January 6, 2020, was 236 dollars as of closing on November 27, 2023, and has risen about 7.8 times in less than 3 years.

Similar to the Coca-Cola case,In the case of US stocks, it is necessary to consider not only rising stock prices, but also exchange rate fluctuations.

In this case, what is the dollar to yen rate compared to the time of purchaseYen depreciates and dollar appreciatesTherefore, the valuation gain is approximately 9.65 million yen. If you sell with a taxable account, tax of about 20% (about 1.93 million yen) will be levied on 9.65 million yen. However, if it is an NISA account, the profit from the sale is tax-exempt.

The greater the profit, the greater the benefit of tax exemptionIt's an example that makes things clear.

Growth stocks are not uncommon for companies that do not issue dividends (no dividends) because, first and foremost, companies invest money into their own growth.

In the case of Tesla, dividends were paid twice during the period. Tesla first issued dividends in August 2020, and since it was founded only twice, it is safe to say that it is a growth stock rather than a dividend stock.

If you look at the chart, there was a time when the stock price was set at a high price exceeding 400 dollars, but if profit was determined at 400 dollars, the sale price would be 13.8 million yen (exchange rate calculated at 115 yen).

After that, Tesla's stock price fell to around $100, and if you let go of it during this period, the sale price would be about 4 million yen (exchange rate calculated at 134 yen).

“When will profits be determined?” It's so difficult that it's even a stock investment proposition.

When it comes to advanced stock investors, they even say “profit margin is more difficult than cutting losses.”

It seems like your grip strength will also be tested to see if you can hold on to this much profit for a long period of time!

What are the strange stocks to buy in the new NISA growth investment facility?

① High dividend stocks → income gains (dividends)

② Growth stocks → capital gains (gains on price increases)

Depending on your investment stance, the stocks you are considering buying are different!

*Dividends on US stocks are subject to 10% tax, even if it is an NISA account

How was it?

With the new NISA growth investment facility, “I don't know what kind of stock would be good to buy...” I hope it will be helpful for those who are worried about this.

If you open a new account with Moomoo Securities, transaction fees for specific/general accounts are free for 2 months after opening!

Furthermore, we are running a campaign where all popular US stocks (purchase price) will be won by lottery!

*Only exchange costs will be charged

*The Tsumitate Investment Facility is currently being prepared, and it is planned to be handled from next year onwards.

[Disclaimers]

The individual stocks taken as examples in this article are reference information only, and are intended to be explanations only. It is not a specific recommendation for individual stocks.

Various fees are not taken into account in the examples in this article. Actual investment results are different.

(Written on 2023/12/6)