Dividend, Share Price: Is there a connection?

[kaveman]

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

Provided there are no other influences the share price would normally be expected to fall by the amount of cash/share the company sends to shareholders. This fall will also include in imputation credits included in the dividend. Unless the price recovers soon after the record date then your nett change could be zero. This of course would be based on the closing price on the record date, and the price the next day, quite often the opening price gaps down from the closing price

 

[rozella]

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

Is that a slip of the fingers, kaveman ? .....I think you mean exdiv date not the record date.

The day before when NHC announced their profit report they were trading around 131.0, & now they are at 165.0 today, so it seems that all the divs plus most of the proposed capital return is already factored into the price. What will happen on exdiv day ? I agree with kaveman, & always allow that the price will drop by the div + fc. Question is, how long will it take a stock like this to recover ?

Its dividend has been doubled plus an additional 13.0 special div. all fully franked.

 

[rozella]

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

ANZ is making some movement in a positive direction atm, ahead of their profit report tomorrow.

Banking analysts expect ANZ to achieve a net profit of just over $3 billion for its 2004/05 year, up from the previous year's $2.815 billion result.

newspaper article

 

[rozella]

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

Bought another parcel of ANZ today @ 2318.0 with a margin of 75%
Investment 579.50/share
Exdiv 8th November, dividend 59.0/share fully franked 25.29/share

 

[happytrader]

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

There sure is a connection.

There's usually a greed run up to the profit report even if it is only short. Then a quick dump on the day of the profit report. Its got nothing to do with how good the report is. Its about where the share is in its monthly range and about how much money can be made before the share goes exdividend. Think in bucks. That is my observance at these times anyway.

Anything I say is not to be taken as financial advice or recommendations. I could be a raving looney for all you know.

Cheers
Happytrader

 

[rozella]

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

Bought BOQ on 27th October @ 1376.0 with a margin of 70%
Investment 412.80/share
Exdiv 7th November, dividend 40.0/share fully franked 17.14/share

 

[rozella]

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

SGB has opened cautiously after the report, however I bought another parcel on the open.

Bought SGB on the open today @ 2751.0 with a margin of 75%
Investment 687.75/share
Exdiv 28th November, dividend 70.0/share fully franked

 

[It's Snake Pliskin]

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

SGB has opened cautiously after the report, however I bought another parcel on the open.

Bought SGB on the open today @ 2751.0 with a margin of 75%
Investment 687.75/share
Exdiv 28th November, dividend 70.0/share fully franked

Hi Rozella,

You state you bought on the open.

Does that mean you buy/sell as soon as the market is open?

I usually wait for the first half an hour to go by before buying. I do see some benefit in selling in the first half hour though.

 

[rozella]

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

G'day Snake Pliskin,

I usually buy the day after the announcement when the dust settles, but in this case the DOW was up so much, I expected a good day, & was trying to be greedy with SGB. I still think there was some over reaction but it is up to the market to decide. Same thing happened with ANZ, but it is on the move now.....just could have bought it cheaper.

St George delivers record profit but disappoints on margin

I do more selling on the close than any other period.

 

[It's Snake Pliskin]

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

Thanks Rozella.

 

[rozella]

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

Just sold my last parcel of CBA today.....it may have a bit more in it today, but it has been a while returning back to this price & I need the proceeds to start financing some LPT's which report later in December. As I type it has jumped up another 3 cents but I wanted to sell today & I am getting hungry.....I mean the food type hungry, & we all know what can happen in the few minutes when you make a cuppa & a sandwich.

Sold CBA today @ 3912.0
Bought 1st August @ 3906.0 with a margin of 75%
Investment 976.5/share
Dividend was 112.0/share fully franked 48.0/share.
Gross profit 166.0/share = 17% return on investment. 92 days

 

[rozella]

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

Bought another parcel of BOQ today @ 1407.0 with a margin of 70%
Investment 422.10/share
Exdiv 7th November, dividend 40.0/share fully franked 17.14/share

 

[rozella]

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

Bought ENV today @ 120.0 with a margin of 65%
Investment 42.0/share
Exdiv 7th November, div 5.7/share zero franked

 

[rozella]

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

Sold WBC today @ 2161.0
Bought on the 30th September @ 2110.0 with a margin of 75%
Investment 527.50/share
Exdiv 17th November, dividend 51.0/share fully franked 21.86/share
Gross profit 51.0/share = 9.67% return on investment. 39 days

Sold 1 parcel of SGB today @ 2821.0
Bought 31st October @ 2751.0 with a margin of 75%
Investment 687.75/share
Exdiv 28th November, dividend 70.0/share fully franked 30.0/share
Gross profit 70.0/share = 10.18% return on investment. 8 days

Will see if I can buy back at a lower price for both on a low day prior to exdiv.

 

[rozella]

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

WBC & SGB performed reasonably well on a down day, so I re-entered.

Bought WBC near the close @ 2163.0 with a margin of 75%
Investment 540.75/share
Exdiv 17th November, dividend 51.0/share fully franked 21.86/share

Bought SGB on the close @ 2815.0 with a margin of 75%
Investment 703.75/share
Exdiv 28th November, dividend 70.0/share fully franked 30.0/share

 

[rozella]

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

Yet another good day for the dividend traders, no buys or sells, although I was tempted to take another profit from SGB.....it has closed up 84.0 cents on my last purchase 4 trading days ago. The div is 70.0 cents.

I assume most of the dividend traders would have similar stocks atm, & I have been well up 9 out of the last 12 trading days, without much trading, mainly monitoring & doing paperwork.

 

[mit]

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

Rozella,

Just checked and the total over the last twelve days have been well above average. Just noticed that after buying CNP today I am almost back to a full portfolio for the first time since the correction in October.

MIT

 

[rozella]

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

Looks like we are on the same see-saw mit.

 

[rozella]

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

Sold HHV today @ 96.0
Bought 20th september @ 96.0 with a margin of 65%
Investment 33.6/share
exdiv 30th September, dividend 3.0/share fully franked 1.286/share
Gross profit 4.286/share = 12.75% return on investment. 57 days

 

[rozella]

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

Sold WBC today on the close prior to exdiv tomorrow @ 2288.0 (was sitting in @ 2300.0 prior to close & should have taken 2298.0/2299.0)
Bought 9th November @ 2163.0 with a margin of 75%
Investment 540.75/share
Exdiv 17th November, dividend 51.0/share fully franked 21.86/share
Gross profit 125.0/share = 23.11% return on investment. 7 days