Buying a stock for upcoming dividend payment?

[McGoldrick]

I have been caught out a few times when I buy a stock for an upcoming dividend payment. As in the last Telstra div. It fell immediatly after the record date more than the div paid.In the upcoming MRE cash return to shareholders, how does one make sure the return will be greater than the share price drop the next day?
McGoldrick

 

[skc]

I have been caught out a few times when I buy a stock for an upcoming dividend payment. As in the last Telstra div. It fell immediatly after the record date more than the div paid.In the upcoming MRE cash return to shareholders, how does one make sure the return will be greater than the share price drop the next day?
McGoldrick

There are dividend stripping strategies out there that you can research...But the bottom line is that you can never "make sure" of such things - or we'd all be billionaries?!

 

[So_Cynical]

I have been caught out a few times when I buy a stock for an upcoming dividend payment. As in the last Telstra div. It fell immediatly after the record date more than the div paid.In the upcoming MRE cash return to shareholders, how does one make sure the return will be greater than the share price drop the next day?
McGoldrick

Don't sell the next day....wait a few weeks or a month, or like me sell before hand and take the profit and not the divi/capital return...anyone else amazed that the Minara SP hasn't taken off...free money for sale and its like no ones interested. :dunno:

 

[skc]

Don't sell the next day....wait a few weeks or a month, or like me sell before hand and take the profit and not the divi/capital return...anyone else amazed that the Minara SP hasn't taken off...free money for sale and its like no ones interested. :dunno:

Too early I think.. I would expect a run up (or at least better relative performance compared to other nickel stocks) 2 weeks before the ex-div (~20 Aug?).

And it's not exactly free money... like you've pointed out usually the ex-div fall is much more severe than the actual dividend / capital return pocketed.