Dividend, Share Price: Is there a connection?

[rozella]

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

rozella,

Why AFI?

it's yield seems a bit low.

Rod.

Yes it is lower than my normal criteria, but...I don't intend to stay for the dividend. I usually trade it each reporting season, & it generally rises after its report....just want to skim a little bit if I can....5 or 6 cents will be okay.

 

[rozella]

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

Sold AFI today @ 470.0
Bought 8th February after it announced its profit report @ 456.0 with a margin of 70%
Investment 136.80/share
exdiv date 15th February, dividend 6.5/share fully franked 2.786/share
Gross profit 14.0/share = 10.23% return on investment. 1 day

 

[Milk Man]

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

So thats why you bought AFI .

 

[rozella]

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

I did not expect that much.....double the dividend in 1 day.......should be more of it.

Who knows it might keep going tomorrow, but a bird in the hand.....

 

[rozella]

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

Sold DUE today @251.0
Bought 19th December @ 253.0 with a margin of 65%
Investment 88.55/unit
Exdist date 22nd December, distribution 11.75/unit zero franked
Gross profit 9.75/share = 11.01% return on investment. 56 days
I have been holding out too long waiting for 253.0 +.....there are better opportunities at present.....even TLS....maybe....??

 

[rozella]

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

Well, I took the plunge & bought TLS today @ 404.0 with a margin of 75%
Investment 101.0/share
Exdiv date 20th February, dividends 20.0/share fully franked 8.57/share.
I don't expect to stay for the dividend this time.

 

[rozella]

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

Bought JBM today @ 668.0 with a margin of 60%
Investment 267.20/share
Div announcement expected tomorrow, last years dividend was 20.0/share fully franked.
Last years exdiv date was 21st February.

 

[rozella]

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

Sold CBA today @ 4432.0 but still have another parcel for the dividend.
Bought 18th January in stages @ 4401.0, 4370.0, & 4366.0 for an average of 4379.0 with a margin of 75%
Investment 1094.75/share
Gross profit 53.0/share = 4.84% return on investment. 30 days

 

[TjamesX]

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

Thought this would be right down your alley rozella;

http://www.aireview.com/pdfs/Aireview95.pdf

Good article.


Given that dividend stripping doesn't go well in a bear market (when/ if this happens), what would you do with all your time???

May I suggest sail around the world with all your profits

 

[TjamesX]

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

Oh, and I forgot to ask.....

were you the vampire being interviewed????

 

[rozella]

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

G'day TjamesX,

Yes I read that on another forum & took a hard copy....very good....almost true....& no, not rozella.....that was like "footsteps in the fog"

Who said Dividend trading is no good in a bear market ? It has served me well for a long time now....not that we have had a 1987 crash, but there has been some bad markets around now & again. September 2001 was an example.

For the last 3 years stoplosses have not been so important...just like a bad haircut, it grows back in notime, but in a bear market you can't let it slip. In a bear market you do a lot more trades & need to be satisfied with "half a loaf of bread"

I bought JBM a few days ago & let it slip through the stoploss, however it has recovered some today.

I just sold TLS @ 403.0
Bought TLS 13th February @ 404.0 with a margin of 75%
Investment 101.0/share
Exdiv date 20th February, dividends 20.0/share fully franked 8.57/share
Gross loss 1.0/share = 0.99% loss on investment.
Even the dividend can't help this one.

Cheers

 

[rozella]

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

Bought HIL in dribs & drabs today @ 478.0 with a margin of 65%
Investment 167.3/share
Exdiv date 7th March, dividend 13.0/share fully franked 5.57/share

 

[rozella]

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

Bought ABC today on the close @ 237.0 with a margin of 65%
Investment 82.95/share
Exdiv date 1st March, dividend 6.25/share fully franked 2.68/share

 

[zzkazu]

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

Rozella,
when I saw the dividend was substantial down for last year I had to get out minus my undies…

Oh well there’s always next time.. watching MGW now.. Seems to have better fundamentals.

zzkazu

 

[rozella]

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

G'day zzkazu,

Rozella,
when I saw the dividend was substantial down for last year I had to get out minus my undies…

Which stock ?..........JBM, I presume. There was a ASX query on why the price dropped all of a sudden......now we know why.

 

[zzkazu]

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

Yeah JBM.. a bit of insider trading we see then..

It still looks very bearish to me..

zzkazu

 

[finnsk]

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

This is taken from the ASX web side under ex dividend date.

"""Shares are quoted ‘ex dividend’ on the fourth business day before the company's Record Date. To be entitled to a dividend a shareholder must have purchased shares before the ex dividend date. The share price may fall on the ex dividend date, with the fall in price being related to the amount of dividend being paid, on the basis that the buyer will not, in the ordinary course of events, receive the dividend because they will not be registered by the Record Date."""

If I understand this right as long as i hold the share on open of the market on the ex dividend day I will be intitled to the dividend.
I do not have to hold to record day.

Finnsk

 

[rozella]

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

G'day finnsk,

You are correct.

If you have a buy contract note dated prior to the exdiv date, the earliest you can sell to capture the dividend, is on the open on exdiv day.

So this means you can buy on the close the day before exdiv day, & sell on the open on exdiv day & capture the dividend. I have done this many times.

However, when you do this, you must make sure that you do your own registering prior to record date, especially your tax file number, as the registry is entitled to deduct 48.5% withholding tax from your dividend payment if you don't supply it in time.

It can be tricky, but if you are doing this all the time you get a routine going. What I mean is that if you buy the day before exdiv date, record date is in 4 more business/settlement days, but T3 settlement does not take place for 3 business/settlement days, so there is really only 1 day to register. This is also why you should not leave it to your broker....they will just shrug their shoulders & say not enough time.......you don't need this hassle....you can claim it back at tax time, but you don't have the cash in the meantime.

Some registries allow you to do this online, & others have forms that can be downloaded that can be filled in & faxed back on the appropriate day.....don't post unless you have plenty of time to spare.

Cheers

 

[finnsk]

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

However, when you do this, you must make sure that you do your own registering prior to record date, especially your tax file number, as the registry is entitled to deduct 48.5% withholding tax from your dividend payment if you don't supply it in time.

Thanks that was very clear answer

In regards to the registering does that mean there are more than one register?
When I have bought shares I get my mail from "Computershare" I thought every company was using them?

Finnsk

 

[rozella]

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

In regards to the registering does that mean there are more than one register? When I have bought shares I get my mail from "Computershare" I thought every company was using them?

This is a Useful Links page on my website.....scroll halfway down the page to Share Registries