Re: Dividend, Share Price. Is there a connection?
Sold WBC today @ 2433.0......one of my oldest holdings.....it is not a good trade even though it has been held through 2 dividend periods.....interest eats up too much on these longer holdings with the dividend strategy & the cash would be utilised much better by selling earlier & moving on to a more lucrative deal.
Bought 4th May 2006 @ 2436.0 with a margin of 75%
Investment 609.0/share
Exdiv 1st June, dividend 56.0/share, fully franked 24.0/share.
Exdiv 16th December, dividend 60.0/share, fully franked 25.71/share.
Gross profit 162.71/share = 26.72% return on investment, incl fc. 203 days
Interest = 90.43/share
Net profit = 72.28/share = 11.86% net return on investment.