# Ex-dividend date: any good buy/sell strategy?



## Mhigasi (8 April 2011)

Hi everyone
I'm a newbie. Just reading and learning for the moment. 

Is there are good strategies for buying shares just before ex-dividend date? E.g.

- which share to buy?
- when to buy? 
- when to sell?
- is this a tax efficient approach?

Thank you all.


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## Julia (8 April 2011)

There are various existing threads about this if you do a search.


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## Agentm (8 April 2011)

why not help out and post some links then??


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## Julia (8 April 2011)

Agentm said:


> why not help out and post some links then??



Because I don't have time, and the OP should be happy to do a search for info that he/she needs.
However, by all means feel free to offer whatever help you think appropriate, a gesture that would be more constructive than criticising my merely pointing that there is much existing discussion about the topic.


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## Agentm (8 April 2011)

imho a newbie posting should be encouraged

your taking things a little personal, but imho why not offer up some links rather than be confrontational?

if you know of other threads on the topic put some links up..

telling someone to find it themselves when its a newbie is imho a tad brash..

show a little grace and help someone out..  focus on the topic and dont take things to heart.. 

imho the topic is fine and worth discussing


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## Mhigasi (8 April 2011)

Julia / agentm
Thank you for your help and concern.  
No worries at all. 
I will look around for the Links/threads.
Cheers


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## burglar (8 April 2011)

Mhigasi said:


> Julia / agentm
> Thank you for your help and concern.
> No worries at all.
> I will look around for the Links/threads.
> Cheers



There must be something in the drinking water. 
You've walked into a cat fight !!
There is another cat fight brewing in the PEN thread

https://www.aussiestockforums.com/forums/showthread.php?t=5004&p=624980#post624980

Seriously, there are good threads, here is one I like:

https://www.aussiestockforums.com/forums/showthread.php?t=21891&p=613723&highlight=sell#post613723


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## Tyler Durden (8 April 2011)

In theory the share price should decrease by the amount of dividends paid out.


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## skc (8 April 2011)

Tyler Durden said:


> In theory the share price should decrease by the amount of dividends paid out.




But in practice in doesn't always do that, and there lies the opportunity...


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## Julia (8 April 2011)

Agentm said:


> imho a newbie posting should be encouraged



Fine.  So why don't you simply do that by doing the search yourself and offering the OP the appropriate links.
Instead you choose to try to pick a fight with me.  That's quite OK.
A teacher I had in primary school offered the following advice:



> If criticism comes from someone you respect, take it to heart.  But if it comes from someone whose view is meaningless to you, then understand that it is not worthy of consideration.




I have no further comment to you Agentm.


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## So_Cynical (8 April 2011)

Mhigasi said:


> Hi everyone
> I'm a newbie. Just reading and learning for the moment.
> 
> Is there are good strategies for buying shares just before ex-dividend date? E.g.
> ...




- which share to buy? A share you know well and have confidence in
- when to buy? When its cheap and before the dividend ex date 
- when to sell? When your in profit 
- is this a tax efficient approach? Yes

A couple of my recent examples.

https://www.aussiestockforums.com/forums/showthread.php?t=17040
https://www.aussiestockforums.com/forums/showthread.php?t=15351
~


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## ChaoSI (8 April 2011)

Agentm said:


> imho a newbie posting should be encouraged
> 
> your taking things a little personal, but imho why not offer up some links rather than be confrontational?
> 
> ...




you wrong her.
Julia is incredibly helpful one of the many who take an active interest in newbies, me being one of them.
fact is that as a member of this forum you shold know that we aren't allowed to post advice on what shares to buy specifiically, if you do ask then you'll get an answer like "so_cynical" has written.

there is a whole forum called "stock chat" with alphabetised listing of stocks which are under construction.
and asking people to find information here isn't 'brash' it encourages skills you need to use anyway, mainly researching. The info here is very well organised and easy to find.

i have nothing against mhigasi posting the question but you need to understand that this is a community and people help when they can and if they feel like it. there's no obligation to help just a desire to


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## GumbyLearner (9 April 2011)

Agentm said:


> imho a newbie posting should be encouraged
> 
> your taking things a little personal, but imho why not offer up some links rather than be confrontational?
> 
> ...




That poster is usually doing 'community' work and rarely (if ever) has time to post on ASF and/or provide links to websites. Of course it is hard to make any technical and/or fundamental analysis about stocks/markets or trends when pre-occupied with such philanthropic acts of goodwill. The network signatures and IP address login times to ASF should be able to attest to how busy that poster actually is. 

Ease up a little mate.  LOL

Anyway onto the next AC Nielsen poll. :luigi:

P.S> Not to mention the difficulty managing ones own super portfolio under such circumstances.


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## Bill M (9 April 2011)

Mhigasi said:


> Hi everyone
> I'm a newbie. Just reading and learning for the moment.
> 
> Is there are good strategies for buying shares just before ex-dividend date? E.g.
> ...



The dividends of a stock or ETF are always a very big consideration for me as to whether I buy or not. I have a pool of stocks that I watch every day and I note when dividends are due. I like dividends as I live off them and if I can buy a good stock at a cheap price just before the dividend then I consider myself not to have only bagged a bargain but got the accumulated dividends for free.

Just recently I was eying off an ETF, the average price was around $25 over the past 6 Months. I really wanted to buy this ETF as it is a high dividend yield one. The price was going against me for 3 Months, I refuse to pay too much for anything. Then along came early early March this year, finally this ETF retreated to my value price. I ended up buying it for around $23.80 a good couple of bucks cheaper. The dividend was due in 2 weeks. Now the stock is up $2 per share and I got the dividend for free. There are many different strategies, mine is probably one that most people don't use but it works for me.


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## Tyler Durden (9 April 2011)

Bill M said:


> I like dividends as I live off them and if I can buy a good stock at a cheap price just before the dividend then I consider myself not to have only bagged a bargain but got the accumulated dividends for free.




It's interesting you say this because this is akin to my plan. However, I find it hard to locate decent shares that pay throughout the various months of the year. Most companies seem to pay in the same month. Do you encounter this problem?


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## youngone (9 April 2011)

burglar said:


> There must be something in the drinking water.
> You've walked into a cat fight !!
> There is another cat fight brewing in the PEN thread
> 
> ...




After hearing about the fights, my first thoughts was, cant be Tech vs Hangseng again! So i went straight into the forums. Thanks for the links for us newbies.


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## Julia (9 April 2011)

Mhigasi, we had a poster here, Rozella, who was the real dividend expert, especially with respect to dividend stripping.

  There was a long thread about this, which is what I was thinking of yesterday.
A quick attempt at a search has failed to bring this up as I can't recall the name of the thread.
Someone else might remember?


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## Bill M (9 April 2011)

Tyler Durden said:


> Most companies seem to pay in the same month. Do you encounter this problem?




Yes I do, March, May, Sep, Nov and Dec are the best Months. Jan, Feb and April are my worst. I just have to adjust to that.


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## Joe Blow (9 April 2011)

Julia said:


> Mhigasi, we had a poster here, Rozella, who was the real dividend expert, especially with respect to dividend stripping.
> 
> There was a long thread about this, which is what I was thinking of yesterday.
> A quick attempt at a search has failed to bring this up as I can't recall the name of the thread.
> Someone else might remember?




Hi Julia, this is the thread you were looking for: https://www.aussiestockforums.com/forums/showthread.php?t=454

It was originally started by Lucstar but adopted by rozella soon after.


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## nulla nulla (9 April 2011)

Joe Blow said:


> Hi Julia, this is the thread you were looking for: https://www.aussiestockforums.com/forums/showthread.php?t=454
> 
> It was originally started by Lucstar but adopted by rozella soon after.





Thanks Joe, well worth a read.


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## Julia (9 April 2011)

Joe Blow said:


> Hi Julia, this is the thread you were looking for: https://www.aussiestockforums.com/forums/showthread.php?t=454
> 
> It was originally started by Lucstar but adopted by rozella soon after.




Thanks, Joe.  That's the one I was thinking of.


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## davede (29 June 2011)

Sorry to dig up a bit of an aging thread (didn't want to start a new one after seeing a bit of hostility at this one being started ).

I've been looking for a lot of research, statistics and analysis on the price change on ex-dividend date and the relationship between the dividend amount.

The threads that are linked to from this thread seem to be very opinion based and experience based. being a numbers man it would be very useful to have real data / research.

Could anyone point me in the right direction? Thanks.


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## Tysonboss1 (1 August 2011)

Tyler Durden said:


> It's interesting you say this because this is akin to my plan. However, I find it hard to locate decent shares that pay throughout the various months of the year. Most companies seem to pay in the same month. Do you encounter this problem?




Just set aside 12months living expences into a high interest account and pay yourself a weekly wage and then as you get paid periodically throughout the year eg, dividends, interest,rental and business profits use them to top up the account. so you living expenses account becomes like the magic pudding, every bite you take just keeps regenerating.


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## Tyler Durden (1 August 2011)

Tysonboss1 said:


> Just set aside 12months living expences into a high interest account and pay yourself a weekly wage and then as you get paid periodically throughout the year eg, dividends, interest,rental and business profits use them to top up the account. so you living expenses account becomes like the magic pudding, every bite you take just keeps regenerating.




Sorry to sound dumb, but I'm not sure I completely understand?


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## Tysonboss1 (2 August 2011)

Tyler Durden said:


> I find it hard to locate decent shares that pay throughout the various months of the year. Most companies seem to pay in the same month. Do you encounter this problem?






Tysonboss1 said:


> Just set aside 12months living expences into a high interest account and pay yourself a weekly wage and then as you get paid periodically throughout the year eg, dividends, interest,rental and business profits use them to top up the account. so you living expenses account becomes like the magic pudding, every bite you take just keeps regenerating.






Tyler Durden said:


> Sorry to sound dumb, but I'm not sure I completely understand?




If you don't understand I may have been the one who misunderstood you.

I thought you were saying that you find it hard to live off dividends because they only pay a few times a year.

so I was saying to get around this just put 1 years "wages" into an account and pay yourself a paycheck each week to live off from this account, and then as you go though the year collecting investment earnings use that to top up the account.


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## notting (2 August 2011)

Dogs of the Dow?
Otherwise there isn't one


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