Re: Dividend, Share Price. Is there a connection?
G'day The Estimator,
Yes, SSX is one that has come back to just above buy price on exdiv day....they don't all do that.
I made good $$$'s in short time on this one in two trades.
Sold SSX today (7th Sept) @ 157.5
Bought 5th September @ 152.5 with a margin of 65%
Investment 53.375/share
Exdiv 19th September, dividend 4.5/share fully franked 1.93/share
Gross profit 5.0/share = 9.368% return on investment. 2 day trade
Will re-enter if situation permits
Then todays trade
Sold SSX today (19th Sept) @ 153.5
Bought 9th September @ 153.0 with a margin of 65%
Investment 53.55/share
Exdiv 19th September, dividend 4.5/share fully franked 1.93/share
Gross profit 5.0/share = 9.34% return on investment. fc excluded. 10 day trade.
I prefer to take a profit when it is there, i.e. I set out to make the dividend my profit, so if the stock rises an amount approximately equal to the dividend, then flattens out, I sell & re-enter on a low day. SSX is a good example, but sometimes this can be done 3 or 4 times within 3/4 weeks. Recent examples are WAN & ADB
rozella