Dividend, Share Price: Is there a connection?

[rozella]

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

Bought smaller than usual parcels today of: ASB & HHV I have not traded either before.

Bought ASB today @ 198.5 with a margin of 45%
Investment 109.175/share
exdiv 5th October, dividend 9.0/share fully franked 3.86/share

Bought HHV today @ 96.0 with a margin of 65%
Investment 33.6/share
exdiv 30th September, dividend 3.0/share fully franked

 

[rozella]

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

Sold 1 parcel of SBC today in bits & pieces averaging 1522.47
Bought 15th September in a mixed lot @ an average of 1462.4/share with a margin of 65%
Investment 511.84/share
Exdiv 28th September, dividend 33.0/share fully franked 14.14/share
Gross profit 60.07/share = 11.74% return on investment. 11 day trade.
Not much time left to re-enter for the dividend at a price around 1475/1480....but will see, it is ranging alot.

 

[onebackpack]

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

rozella, re your calculations:

It would be dangerous to use your margin loan right up to the maximum LVR with a high dividend payer. If the share price falls 3-4% (or possibly much more) on ex-div day, you could be hit with a margin call.

Of course, if you time it perfectly and it runs up 3-4% between your purchase date and the ex-div date, you'll have nothing to worry about...

 

[rozella]

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

Sold MCW today @ 203.0
Bought 22nd June @ 201.0 with a margin of 70%
Investment 60.3/share
Exdiv 24th June, distribution 7.4/share, zero franked
Gross profit 9.4/share = 15.59% return on investment. 96 days

 

[rozella]

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

G'day onebackpack,

It would be dangerous to use your margin loan right up to the maximum LVR with a high dividend payer. If the share price falls 3-4% (or possibly much more) on ex-div day, you could be hit with a margin call.

I am mostly to the limit of my margin loan every day, & have never had a margin call (excluding CFD's which I don't use anymore), infact most of the time I am in the buffer zone.

My risk is as follows
I try to always have 10 stocks minimum, & 15 stocks maximum, with no stock being more than 15% of portfolio nomatter how good I think it may be. I grade my stocks, e.g CBA, WES, WDC etc may be up to my 15% maximum of portfolio, & MCW, SBC, DRT, etc are usually 5% to 8% of portfolio....BSL I have atm & that is approx 10%. My stoploss is 3% of purchase price, trailing up as the price increases, so if my largest holding of 15% dropped to my stoploss, then this would only be a drop of 0.45% of portfolio (not much damage done) This also gives me room for not acting quick enough, & some discretion.

I adjust my stoploss down by the div + fc on exdiv day.

The margin loan security is calculated on all the stocks collectively in the portfolio, not individually.

Margin loans have taught me to be disciplined, & to keep my housework up-to-date. If you were in a position that you had a margin call, then they would be doing you a favour, making you do your job. The only way I know to make a dollar in this game is to cull the losers.....its something that you can control, you can't make them go up, but you can stop them from going down.

Cheers

 

[rozella]

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

Sold half of my remaining parcel of SBC @ 1525.0 today
Bought SBC on 19th September @ 1468.0 with a margin of 65%
Investment 513.80/share
Exdiv 28th September, dividend 33.0/share fully franked 14.14/share
Gross profit 57.0/share = 11.09% return on investment.

 

[rozella]

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

Sold BSL today @ 1009.0
Bought 23rd August @ 959.0 with a margin of 70% Investment 287.70/share
Exdiv 28th September, dividend including special 44.0/share fully franked.
Gross profit 50.0/share = 17.38% return on investment. 30 days

 

[RodC]

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

Well done rozella,

I obviously flinched too early, I sold my BSL today for $10.02.

Rod.

 

[rozella]

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

G'day Rod,

I placed the order at 1010.0, but amended to 1009.0.......only a few went at 1010.0

rozella

 

[rozella]

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

Bought FCL today @ 214.0 with a margin of 65%
Investment 74.9/share
Exdiv 4th October, dividend 5.0/share fully franked 2.14/share

 

[rozella]

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

Sold ASB today @ 209.0
Bought 20th September @ 198.5 with a margin of 45%
Investment 109.175/share
exdiv 5th October, dividend 9.0/share fully franked 3.86/share
Gross profit 10.5/share = 9.62% return on investment. 8 days

 

[bonkers]

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

Hi yes my favourite form of investing trading is to usually start accumulating a good company around 6 weeks prior to div or other important date in company's calendar--such as AGM--studies have shown the shareprice will usually outperform over that period--doesn't always happen--most times I find it does though.
Regards,--BK.

 

[rozella]

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

Bought SGB today @ 2780.0 with a margin of 75% Investment 695.0/share.
Expected profit report 30th September.
Last years dividend was 62.0/share fully franked 26.587/share

rozella

 

[rozella]

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

Bought DJS today @ 248.0 with a margin of 65% Investment 86.80/share
exdiv 11th October, dividend 7.0/share fully franked.

 

[bonkers]

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

Hi rozella, I'm into CPU--with an AGM date of November the 9th--I share your comments about margin---back when it was dropping a couple of years ago I was overextended on it--at around 2.00--saw it go down to 1.35--I was forced to sell higher--only to see Goldmans buy 26 million in one day at 1.35!
Had I not been overleveraged--I would have been able to survive! (anyway-long story--on a financial calamity I experienced at the time) I don't severely leverage--unless I have a stop loss in place and I'm prepared to lose a pre determined amount of money.
Regards,--BK.

 

[rozella]

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

Yes bonkers, having a stoploss, risk management, & a set of rules to follow, is the key to consistant profits.

We have all broken the rules at some time & have been burnt. As they say "If you burn your bum, you sit on the blisters"....how true.

rozella

 

[The Estimator]

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

Bought SGB today @ 2780.0 with a margin of 75% Investment 695.0/share.
Expected profit report 30th September.
Last years dividend was 62.0/share fully franked 26.587/share

rozella

Don, this is gonna be a broad range but any idea around what time exdiv would be. Just so I have a bit of an idea for warrant expiry dates. Seems like a bloody good div to get on.

Cheers

John

 

[rozella]

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

G'day The Estimator,

They have not announced yet, but last year was 29th November. This is on the last page of the exdividendwatchlist on the forecast sheet.

 

[The Estimator]

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

Ta. Yeah, thought it would be on the lsit but I was at work with my grubby little hand on works docs with my own private stuff out of reach at home hehe. Plus my eyes were lit up when after realising there was a 290 installment warrant available for SGB. But it expires on the 22 of december leaving little time for the warrant value to return to normal after the usual "exdiv day slump"

John

 

[rozella]

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

Sold 1 parcel of CBA today @ 3878.0
Bought 10th August @ 3872.0 with a margin of 75%
Investment 968.0/share
exdiv 15th August, dividend 112.0/share fully franked 48.0/share.
Gross profit 166.0/share = 17.15% return on investment. 50 days