Re: Dividend, Share Price. Is there a connection?
G'day savtin,
don't you then have to wait until the stock reaches the $1.84 price before selling with a divi as clear profit?????????????
That is the plan....but you can't win them all.
It is a stock that I don't trade for the dividend. The yield is quite good unleveraged, however, they only offer an LVR of 50%, so it does not reach my best prospects list.
I lower my stoploss by the dividend + franking credit prior to opening on exdiv day
I assume you bought around announcement date
If you originally paid 184.0, then my stoploss would be 178.0
The price did not improve & the last price before exdiv was 179.5, so my stoploss would still remain at 178.0
Prior to open on exdiv day, I would adjust the stoploss to be 169.0, & it hit that on the close 21st March @ 166.0.....
Not all stocks will return to their buy price after exdiv date quickly, & what is good one period can be a dog the next, that is why you must write yourself a set of rules to suit you own comfort zone.
UTB returned to its buy price on exdiv day plus some....great, but others may take a week, month, maybe 3 months or more. So to maximise your profits & to make full use of your trading capital, it is usually quicker to cut your losses & move on to a better deal.
Sorry I can't help anymore than that, & if they would all be perfect trades, life would be too easy.
Cheers