Buying VAS and VDHG on ex-dividend date

[Frankieplus]

Hi everyone.

I have been waiting for VAS and VDHG to drop a bit in price so I can 'buy the dip' but I'm curious if 'buying the dip' on ex dividend date is the same strategy.

The share price of VDHG and VAS will drop tomorrow by the amount of dividend payed out. This I understand.

But I'm not sure if I should use the ex dividend date dip to buy in. I understand that I will not receive dividends until the next dividend payout but this is ok. My main concern is adding more VAS and VDHG to my portfolio at a cheaper price (the dip).

SO does it make sense to buy an e dividend dip where in effect I am paying LESS but it's not really 'cheaper' if you know what I mean.


-Frank

 

[Gunnerguy]

Ju

Hi everyone.

I have been waiting for VAS and VDHG to drop a bit in price so I can 'buy the dip' but I'm curious if 'buying the dip' on ex dividend date is the same strategy.

The share price of VDHG and VAS will drop tomorrow by the amount of dividend payed out. This I understand.

But I'm not sure if I should use the ex dividend date dip to buy in. I understand that I will not receive dividends until the next dividend payout but this is ok. My main concern is adding more VAS and VDHG to my portfolio at a cheaper price (the dip).

SO does it make sense to buy an e dividend dip where in effect I am paying LESS but it's not really 'cheaper' if you know what I mean.


-Frank

Just a thought as I read your post.
Consideration for affects of franking credits on dividends as oppose to CGT tax and time held.
Working these out on your MTR or vehicle of ownership, may affect your choice.
Gunnerguy