Dividend, Share Price: Is there a connection?

[rozella]

Re: Dividend, Share Price. Is there a connection?

Bought ADB today on the close @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.

Missed a sell on WAN today......reached 843.0 then dropped back to 824.0 before closing at 830.0. Took my off the ball for a while.....weather is too good.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Bought ADB today on the close @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.

Missed a sell on WAN today......reached 843.0 then dropped back to 824.0 before closing at 830.0. Took my eye off the ball for a while.....weather is too good.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Bought ADB today on the close @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.

Missed a sell on WAN today......reached 843.0 then dropped back to 824.0 before closing at 830.0. Took my eye off the ball for a while.....weather is too good.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Bought ADB today on the close @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.

Missed a sell on WAN today......reached 843.0 then dropped back to 824.0 before closing at 830.0. Took my eye off the ball for a while.....weather is too good.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Bought ADB today on the close @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.

Missed a sell on WAN today......reached 843.0 then dropped back to 824.0 before closing at 830.0. Took my eye off the ball for a while.....weather is too good.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Sorry Joe, I guess my fingers are stuttering

rozella

 

[RodC]

Re: Dividend, Share Price. Is there a connection?

Hi Rozella,

Great thread,

It's interesting how often your buys/sells in your personal trading are almost the opposite of the ones on your website.
eg: you've bought both WAN and ADB in the last 2 days whereas both were sells yesterday after hitting stops.

I guess that comes with experience.

Rod.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

G'day RodC,

The basic strategy is the same for both, except that on my forum posts, which are my personal trades & are intraday, I take profits when I reach an amount approximately equal to the dividend, then if we have a low day, I re-enter

On the website trading diary, I only sell when a stop is hit, & only use EOD data.

With WAN & ADB, I am on a different rung of the ladder than the website, if you follow my reasoning.

It is very slow atm with the strategy, but that will change starting next week with the reporting season starting.....its good to have a rest & be partly cashed up anyway.

rozella

 

[RodC]

Re: Dividend, Share Price. Is there a connection?

Hi Rozella,

thanks for the reply,

I suspected that was the case, I just found those 2 to be an interesting contrast.

You're quite right, the reporting season should make things more interesting.

Rod.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Sold WAN today @ average of 847.512
Bought 19th July @ 824.0 with a margin of 70%
Investment 247.2/share
Profit announcement expected 5th August, exdiv date 12th September.
Last years dividend was 21.0/share fully franked 9.0/share.
Gross profit = 23.512/share = 9.51% return on investment . 2 day trade

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Sold ADB today @ 1190.0
Bought 20th July @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.
Gross profit = 35.0/share = 10.1% return on investment. 2 day trade

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Sold CBA today @ 3916.0
Bought 6th July @ 3793.0 with a margin of 75%
Investment 948.25/share
Profit announcement expected 10th August, exdiv date expected 15th August.
Last years dividend was 104.0/share fully franked.
Gross profit = 123.0/share = 12.97% return on investment. 21 days

Bought ALS today @ 780.0 with a margin of 55%
Investment 351.0/share
Announced today, exdiv date 12th August, dividend 25.0/share fully franked.

Bought ASX today on the close @ 2495.0 with a margin of 70%
Investment 748.5/share
Announced today, exdiv 8th August, dividend 50.9/share fully franked.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Re-entered ADB today @ 1223.0 with a 70% margin
Investment 366.9/share
Announcement yesterday, exdiv 26th September.
Dividend 29.0/share fully franked 12.43/share.

ASX has had a good bounce today.....watching the tick movement chart atm.....may be a sell soon before the usual Friday profittaking.

 

[It's Snake Pliskin]

Re: Dividend, Share Price. Is there a connection?

Sold ADB today @ 1190.0
Bought 20th July @ 1155.0 with a margin of 70%
Investment 346.5/share
Profit announcement expected late July, exdiv expected approx 23rd September.
Last years dividend was 25.0/share fully franked 10.71/share.
Gross profit = 35.0/share = 10.1% return on investment. 2 day trade

Rozella,

Interesting reading! I'm curious as to why you sold ADB before the report came out. In the days after you sold the stock it rose dramatically, up to $12.60 I think. I read today you re-entered, though the stock seems to have already factored in the results hence the drop after yesterday's report.

Does your theory suppose the stock will go higher again due to the dividend coming up?

Thanks
tina

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

G'day Snake Pliskin,

My aim is to earn the dividend on every stock I enter, so when a stock rises an amount approx equal to the dividend & starts to flatten, I take the profit, wait for a low day, & re-enter.

As I am fully in the market, usually I need to sell something to finance another if it looks better. e.g. I sold CBA to finance ASX 2 days ago. Although they knocked down ASX because of the lack of return of capital statement, I thought it was a kneejerk reaction.....I will be out of it shortly today & maybe back into CBA Monday.....just trying to squeeze more from the same $$$'s

ADB does not go exdiv until 26th Sept, so there could be a few trades there, as investors go hot & cold over it.....it has had its best report in its history, so they say.....I thought it may have moved more today.

I sold ADB in the above quote because I thought it was the right move at the time. I often leave good money on the table by selling too early, but what you do with the proceeds must also be taken into account.

Does your theory suppose the stock will go higher again due to the dividend coming up?

"The lure of the dividend, gives a stock a reason to rise" this is the basis of the strategy.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Another good day over.

Sold ASX today @ 2580.0
Bought 27th July @ 2495.0 with a margin of 70%
Investment 748.5/share
Announced 27th July, exdiv 8th August, dividend 50.9/share fully franked.
Gross profit = 85.0/share = 11.35%return on investment. 2 days

The dregs of the LPT's I am still holding from the June distributions had substantial rises today, so hopefully I will say goodbye to them next week until December.

 

[It's Snake Pliskin]

Re: Dividend, Share Price. Is there a connection?

Another good day over.

Sold ASX today @ 2580.0
Bought 27th July @ 2495.0 with a margin of 70%
Investment 748.5/share
Announced 27th July, exdiv 8th August, dividend 50.9/share fully franked.
Gross profit = 85.0/share = 11.35%return on investment. 2 days

The dregs of the LPT's I am still holding from the June distributions had substantial rises today, so hopefully I will say goodbye to them next week until December.

Hi Rozella,

Thanks for your response.

Snake Pliskin

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Re-entered CBA today @ 3906.0 with a margin of 75%
Investment 976.5/share
Profit announcement expected 10th August, exdiv date expected 15th August.
Last years dividend was 104.0/share fully franked.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

LPT's are bouncing along today, should be out of them soon if this keeps up.

Sold my last parcel of SGP today @ 586.0
Bought on 2nd May @ 584.0 with a margin of 70% Investment 175.2/share
Exdist 24th June, distribution 19.6/unit, franking TBA.
Gross profit estimate = 21.6/unit = 12.32% return on investment. 91 days, a bit longer than usual. Interest takes 8.6/unit away.

 

[rozella]

Re: Dividend, Share Price. Is there a connection?

Sold ALS today in bits & pieces @ average 817.4
Bought 27th July @ 780.0 with a margin of 55%
Investment 351.0/share
Exdiv date 12th August, dividend 25.0/share fully franked.
Gross profit = 37.4/share = 10.65% return on investment. 7 days

Re-entered WAN today @ 848.0 with a margin of 70%. Investment 254.4/share.
Profit announcement expected 5th August, exdiv date 12th September.
Last years dividend was 21.0/share fully franked 9.0/share.

Wow.....ALS still on the move....now @ 822.0