Dividend, Share Price: Is there a connection?

[rozella]

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

G'day robots,

When you buy $6800 of TCL, you now have $15000 - $2040 = $12960 left available to buy more stocks with.

how do you put up TCL as security? you have just purchased this stock with a margin loan (ie. the $15,000.00 you were loaned)

You are borrowing against the assets that you own. i.e. CBA + TCL

The marginlender becomes the chess sponsor & has the stocks as security, just as a bank does when you buy real estate.

Here are two marginlenders sites to browse:
Leveraged Equities
BT Equities

You will find a list of stocks on these sites which gives you the margin % they will lend on each stock.

Also you can go to my website marginlending page, where you will see the transactions for the last six months. This will give you a better understanding of how a margin loan works.
Margin Trading 2

 

[rozella]

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

A good proportion of my stocks bought in December for the dividends are almost back to their buy prices.

Sold TCL today @ 680.0
Bought 8th December @ 680.0 with a margin of 70%
Investment 204.0/share
Exdistribution 23rd December, distribution 24.5/unit, zero franked.
Gross profit 24.5/unit = 12.01% return on investment. 27 days

 

[rozella]

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

Sold 1 parcel of WDC today @ 1824.0
Bought 8th August @ 1790.0 with a margin of 75%
Investment 447.5/share
Exdist 9th August, distribution 51.07/share, franking 12.57% 2.75/share
Gross profit 87.82/share = 19.62% return on investment. 149 days

WDC is due to report approx 3rd February for another exdist approx 8th February.
I will try for a re-entry on a low day. Also I still have another parcel.

 

[rozella]

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

Sold my last parcel of WDC today on the open @ 1826.0
Bought 4th August @ 1795.0 with a margin of 75%. Investment 448.75/.share.
Exdist 9th August, distribution 51.07/share, franking 12.57% 2.75/share
Gross profit 84.82/share = 18.90% return on investment. 154 days

 

[The Estimator]

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

Hey Don,

What happened to your thread on reefcap?

John

 

[rozella]

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

G'day The Estimator,

The thread is still there....Nick has put it under Active Investing Strategies.

 

[rozella]

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

Sold my last parcel of SGB today @ 2977.8 in bits & pieces
Bought 18th November @ 2922.0 with a margin of 75%
Investment 730.50/share
Exdiv 28th November, dividend 70.0/share fully franked 30.0/share
Gross profit 155.8/share = 21.33% return on investment. 48 days.

 

[rozella]

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

Sold MCW today @ 202.0 in bits & pieces
Bought 20th December @ 202.0 with a margin of 65%
Investment 70.7/share
Exdist 22nd December, distribution 7.6/unit zero franked
Gross profit 7.6/unit = 10.75% return on investment. 16 days

 

[michael_selway]

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

Sold MCW today @ 202.0 in bits & pieces
Bought 20th December @ 202.0 with a margin of 65%
Investment 70.7/share
Exdist 22nd December, distribution 7.6/unit zero franked
Gross profit 7.6/unit = 10.75% return on investment. 16 days

wow nice, i wonder whether this strategy will work in a general Bear market like in 2002-2002. Since 2003-2005 has been a Bull market.

Thanks

MS

 

[rozella]

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

G'day michael_selway,

I have been trading this way for about 7/8 years, & have become more comfortable with it since 2000 when I realised "simple is better", so I avoid complications. Take profits when they are there, & move to the next, or re-enter if the time & price is right.

You referred to MCW which is a LPT.....they suit trading for dividends, because they are high yielding, usually zero franked, so I don't need to make any decisions re the 45 day holding rule, which is always a problem when you start to approach 40 days, which was the case with my SGB trade. I was at 43 days & could sell for 2994.0, so I chose to wait because the longweekend ate up most of the other days. The franking was 30.0, & I sold today for 2978.0.....so just infront.

wow nice, i wonder whether this strategy will work in a general Bear market like in 2002-2002. Since 2003-2005 has been a Bull market.

It depends on how disciplined the trader is.

 

[rozella]

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

Re-entered WDC today @ 1794.0 with a margin of 75%
Investment 448.50/share
exdist expected 8th February, Last years dist was 52.03/share franked to 8.6% 1.92/share

 

[rozella]

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

Re-entered a 2nd parcel of WDC today @1786.0 with a margin of 75%
Investment 446.50/share
exdist expected 8th February, Last years dist was 52.03/share franked to 8.6% 1.92/share

 

[nizar]

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

hey rozella,

do u know of a company called port bouvard?
Land developer based in perth, shares were 196 on november 25, but as low as 160 a month previously. Now on november 25 around midday, they released announcement they were paying interim dividend of 40c/share, which is MASSIVE (but probably unsustainable). Anyway, they reached 245 that day (closed at 230), i didnt sell, now in hindsight i shouldve, coz now the shares are 179. They are paying 20c special dividend around april 16. Historically, the shares should be back to around pre-ex-div about 1 month after, but hey didnt work this time...

Im trying 2 find out how much of their profits they paid out as a dividend (payout ratio), it shouldnt be more than 75, coz they should use it to develop more land, unless they can't find anymore... which would b a problem 4 future growth..

Yeh Im just wondering if you know abt this companyand wat u think of it and any ideas on their payout ratio... (or maybe this wouldnt appear until nxt annual report)

Also, what has been the most money u made (%ROI) in the shortest time?

Thanks..

 

[rozella]

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

G'day nizar,

I don't usually trade it because of low volumes & one off special dividends from the sale of assets. Yes the 20.0 special dividend is due to be paid when they have the proceeds from the sale of the golf course assets & marina. So they are just giving the profits back to the shareholder, & I would not expect the price to recover from one off special divs very quickly if ever.

You can see from below that there earnings were 21.0/share, & their dividends were 55.0/share with the other dividend of 20.0/share still to go.

You should read all the company announcements on the one as it tells you everything you need to know.

Issuer Name PORT BOUVARD LIMITED
Description ORDINARY FULLY PAID
Industry Group Real Estate Management & Development - 40401020 Shares on Issue 63,111,774
Price (previous close in cents) 179
Market Cap ($) 112,970,075
Last Annual Report Data and Ratios
Earnings (cents per share) 21
Price To Earnings 8.52
Dividends (cents per share) 55
Yield (%) 30.73
Asset Backing (cents per share) 90
Price to Assets 1.99

Also, what has been the most money u made (%ROI) in the shortest time?

My wins are reasonable but not outstanding, as I am always eager to take profits along the way, but I can tell you that I once strayed from my rules & lost $58k in 22 seconds.....yes it was AMP. I was profiting $3k to $5k per day totalling $36k, then I said one more trade, with 22 seconds left to go in the matchout, & after close it went into a trading halt & opened 3 days or so later approx $3.50 less.....a valuable lesson with risk % of portfolio

 

[mlennox]

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

Hi Rozella,

enjoying your posts thouroughly one quick question.

what's the LVR ??

Thanks
Mark

 

[rozella]

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

G'day Mark,

LVR = Loan to Value Ratio

This is say if your margin loan = $65000
& your portfolio value = $100000
then the LVR % = 65000/100000 = 65%

Marginlenders have a list of stocks that they lend on, which have the maximum LVR for each stock against it.

 

[robots]

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

hello

any thoughts on api, gone ex-div today

regards
robots

 

[rozella]

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

G'day robots,

API does not reach my criteria for a dividend trade..... Down 7.0 atm exdiv day, which is normal. div + fc = 8.93 It has been trending down for a couple of months.....low volume today.

Sold ANZ today @ 2453.0
Bought post exdiv on 18th November @ 2396.0 with a margin of 75%
Investment 599.0/share
exdiv gone on 8th November....was supposed to be short term, but did not happen.
Gross profit 57.0/share = 9.51% return on investment. 54 days

 

[rozella]

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

Sold SUN today @ 2095.0
Bought 29th August 05 @ 2060.0 with a margin of 75%. Investment 515.0/share.
LVR changed from 70% to 75% since I bought it.
Exdiv 31st August, dividend 120.0/share fully franked 51.43/share.
Gross profit 206.43/share = 40.08% return on investment. 141 days

A long holding, so the interest content = 50.20/share
Profit after interest 156.23/share = 30.33% return on investment.

 

[rozella]

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

Bought CBA today in stages @ 4401.0, 4370.0, & 4366.0 for an average of 4379.0 with a margin of 75%
Investment 1094.75/share
Exdiv expected 20th February. Last years div was 85.0/share fully franked 36.43/share