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Dividend, Share Price: Is there a connection?

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

Thanks doctorj,

It keeps me alert by posting, strange as it may sound
 
Re: Dividend, Share Price. Is there a connection?

I had the same thought this evening as DoctorJ: thanks for posting all these Rozella. It's very good to watch a system in action like this.

Cheers,

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

Thanks ghotib,

I'm off to golf now......hope the market behaves.....back at midday.
I need to stretch the eyes away from the screen.
 
Re: Dividend, Share Price. Is there a connection?

CBA share price hammered due to a measly div payout. It looks like shareholders were expecting a special dividend or at least a better final dividend on the back of such a strong result.
 
Re: Dividend, Share Price. Is there a connection?

G'day JeffB,

Yes, I was expecting better, but it is still a great yield just the same....investors want blood these days
 
Re: Dividend, Share Price. Is there a connection?

While I was out golfing today I sold CPA @ 135.5 ( I see it has gone to 137.5)
Bought 21st June @ 135.5 with a margin of 70% Investment 40.62/share
Exdist 24th June, distribution 4.8/share, zero franked.
Gross profit 4.8/share = 11.81% return on investment. 51 day trade.
Would have been nice to receive the extra 2 cents !!!

Bought GUD today @ 828.0 with a margin of 65%
Investment 289.80/share
Exdiv 22nd August, dividend 27.0/share fully franked 11.57/share
 
Re: Dividend, Share Price. Is there a connection?

Decided to re-enter WES today @ 4150.0 with a margin of 70%
Investment 1245.0/share
Exdiv date 15th August, dividend 127.0/share fully franked.
 
Re: Dividend, Share Price. Is there a connection?


CBA hasn't bounced back unfortunately. (I usually sell on the exdiv day because if you account for the dividend and the franking credits you usually do better than selling the day before) but I might sell today at close as it might really drop after people get their dividends.

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

I decided to stay in CBA for the dividend.
 
Re: Dividend, Share Price. Is there a connection?

Rozella,

I know you trade with margin lending and have done well with your dividend trading strategy.

My question is how effective would your strategy be using 100% of your own funds, providing you had the requisite capital, to yield acceptable returns?

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

G'day Snake Pliskin,

If you have a strategy that you are happy with, then the more capital you can put into the strategy = more profit.

Marginlending does that. eg. If you have a $10,000 trade & make 3%, you profit $300 gross. (using your own $10,000)
If you use marginlending with a LVR of 70%, your trade would be $33,333.33 & make 3%, you profit $1000 gross.

Marginlending does not make you win, it just gives you more cash in the market. The percentage return does not matter as you know, it is the dollar profit that counts.

Of course if you are trading blindly without a proven strategy, then it could be a disaster, as you would lose $1000 of your $10,000

So to answer your question.....if you had unlimited capital, in the above example, to make $1000, you would use $33,333.33 of your own cash for the trade.
 
Re: Dividend, Share Price. Is there a connection?

CBA scooted lower than I expected so I didn't manage to sell at close. So I am in today hoping for a little bounce from Friday.

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

G'day mit,

At the worst it should drop div + franking = 160.0......ouch

The DOW being down 85.58 does not help

I also have WES exdiv today, so together will give my marginloans a fright.
 
Re: Dividend, Share Price. Is there a connection?

Got out of CBA this morning at 37.07 so made money on the franking credits. Sold WES at 40.27 but should have been more patient as it is trading higher than that now.

No Margin problem here , I have to increase the value of my loan again as the growth of my portfolio keeps outstripping my loan limits.

Thanks Rozella for the original idea of trading dividends (I read the first posts at reefcap). I don't trade the same way as you do but the basic premise works well.

Also for those who want to trade dividends Rozella's news letter takes the grunt work out of finding announcement dates/dividend dates and Margin Limits.

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

Bought BSL today @ 959.0 with a margin of 70% Investment 287.70/share
Exdiv 28th September, dividend including special 44.0/share fully franked.
 
Re: Dividend, Share Price. Is there a connection?

Bought SUN today @ 2060.0 with a margin of 70%. Investment 618.0/share.
Exdiv 31st August, dividend 120.0/share fully franked.
 
Re: Dividend, Share Price. Is there a connection?

Sold ADB today @ 1279.0
Bought 29th July @ 1223.0 with a margin of 70% Investment 366.9/share
Exdiv 26th September, dividend 29.0/share fully franked 12.43/share
Gross profit 56.0/share = 15.26% return on investment. 32 day trade.
 
Re: Dividend, Share Price. Is there a connection?

Sold GUD today @ 757.0
Bought 11th August @ 828.0 with a margin of 65%
Investment 289.80/share
Exdiv 22nd August, dividend 27.0/share fully franked 11.57/share
Gross loss 44.0/share = 15.18% loss on investment
 
Re: Dividend, Share Price. Is there a connection?

Going nowhere with TLS except down, it is my longest holding bought prior to the last dividend. I should know better than to hold on too long once a stock has hit the stoploss level as this procedure rarely pays.....but.....if.....what....& have had plenty of opportunities to sell at a better price. I was waiting for the dividend to help drive up the price & sell prior to exdiv, but the negative vibes were stronger.

Sold TLS today @ 460.0
Bought on 9th March @ 534.0 with a margin of 75%. Investment 133.5/share.
Exdiv 24th March with a div of 20.0/share fully franked 8.57/share
Gross loss 45.43/share = 34.03% loss on investment. 177 days

Also sold another parcel today @ 460.0
Bought on 10th March @ 533.0 with a margin of 75%. Investment 133.25/share.
Exdiv 24th March with a div of 20.0/share fully franked 8.57/share
Gross loss 44.43/share = 33.34% loss on investment. 176 days

rozella
 
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