Dividend, Share Price: Is there a connection?

[rozella]

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

Sold GAN today @ 164.85. Bought @ 165.0 on 15th December with a margin of 70%.
Investment 49.5/share. Div 5.2/share zero franked.
Gross profit 5.05/share = 10.2 % return on investment. 20 day trade.

rozella

 

[Kimbo2005]

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

The market is full of anomalies.

Take for example Nylex, (NLX).

It effectively has no assets and has not paid a dividend for years. Even after years of turmoil mamnagement still admits it is too ealry to anticipate a dividend; (the banks will be after further reductions in debt before money flows to shareholders.

Despite this the shares are selling for about 39 cents. Just shows what hype from management can do in terms of supporting the share price and allowing those who got new shares for 25 cents to get out at a hefty profit.

One day, when NLX pays a dividend, shareholders might realise the lack of substance of the company and the share price will take an appropriate dive.

 

[rozella]

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

Sold CPA today @ 132.0. Bought 16th December @132.0 with a 70% margin. Investment 39.6/share. Dividend 4.83/share zero franked.
Gross profit 4.83 = 12.2% return on investment. 22 day trade.

rozella

 

[rozella]

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

Sold WDC today @ 1697.0 Bought @ 1646.0 on 31st December with a margin of 75%.
Investment 411.50/share.
Gross profit 51.0/share = 12.39% return on investment. 10 day trade.
Will be looking for a new entry if it eases back.

Sold NFD today @ 635.0 on the close. I had hoped for a bit more, but did not want to stay for the dividend. Bought @ 631.0 on 4th January with a 70% margin.
Investment 189.3/share.
Gross profit 4.0/share = 2.11% return on investment. 6 day trade.

rozella

 

[rozella]

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

Sold JBM today @ 464.0. Bought @ 444.0 on 4th January with a margin of 50%.
Investment 222.0/share.
Gross profit 20.0/share = 9.01% return on investment. 7 day trade.

Bought DJW today @ 365.0 with a margin of 70%. Investment 109.5/share.
Profit announcement expected around 4th February to go exdiv approx 10th February.
Last years div for this period was 10.0/share fully franked.

rozella

 

[rozella]

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

Bought GWT today on the close @ 319.0 with a margin of 65%. Investment 111.65/share.
Expected to report around 3rd February with exdiv approx 11th March. The same period last year div was 10.0/share fully franked 4.29/share.

rozella

 

[rozella]

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

Re-entered JBM today @ 455.0 with a 50% margin. Investment 227.5/share.
Last years dividend this period was 20.0/share 50% franked 4.29/share, & the exdiv date was 23rd February.......see what happens on announcement date as to staying for the div.

Bought CBA today @ 3251.0 with a margin of 75%. Investment 812.75/share.
Profit announcement expected 9th February with exdiv expected 14th February.
Last years div this period was 69.0/share fully franked.

rozella

 

[mime]

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

I recently got the dividend for NAB then I sold the stock. It was like I got free money. The banks usually drop after the dividend is given but they do recover within a month or 2.

 

[rozella]

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

Sold my last LPT today since exdistributions date, DUE @ 253.0. Bought 21st December @ 253.0 with a margin of 65%. Investment 88.55/share.
Distribution 13.5/share zero franked.
Gross profit 13.5/share = 15.24% return on investment. 23 day trade.

rozella

 

[rozella]

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

Sold one parcel of TEN today @ 438.0 Bought 20th December @ 438.0 with a margin of 70%.
Investment 131.4/share. Div 12.5share fully franked 5.357/share
Gross profit 17.857/share = 13.59% return on investment.

Re-entered WDC today @ 1697.0 with a margin of 75%. Investment 424.25/share.

Also re-entered another parcel of WDC @ 1699.0 with a margin of 75%.
Investment 424.75/share.
Profit announcement expected in Feb with exdiv date approx 17th Feb

Bought another parcel of CBA today @ 3247.0 with a margin of 75%.
Investment 811.75/share.
Profit announcement expected 9th Feb with exdiv 14th Feb

rozella

 

[rozella]

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

Sold my last parcel of TEN today @ 440.0 Bought 10th December @ 435.0 with a margin of 70% Investment 130.5/share. Div 12.5/share fully franked 5.357/share
Gross profit 22.857/share = 17.51% return on investment. 34 day trade.

rozella

 

[crashy]

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

bought EUR last night 1.3107 on a breakout. Sold 1.3155 gross profit 47. 36% return on investment. 19 minute trade.

Should have gone to bed with breakeven stop and woken up 260 pips ahead. Oh well.

:

 

[Warren Buffet II]

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

Sold my last parcel of TEN today @ 440.0 Bought 10th December @ 435.0 with a margin of 70% Investment 130.5/share. Div 12.5/share fully franked 5.357/share
Gross profit 22.857/share = 17.51% return on investment. 34 day trade.

rozella

Rozella can you please explain your numbers to me I do not get them or you are missing some stuff.

Eg:

Initial investment: $10000
Initial Share price: 435.0 = $4.35

Number of shares bought ~ 2299 shares

Dividend paid: $287.375
Sell price: 440.0 = $4.40
Return from sale: $10115.6

So, return = $10115.6 + $287.375 = $10402.975

Profit $10000/$$10402.975 = 0.9612 then (1 - 0.9612) * 100 = 3.88% return

I do not understand much the margin account stuff. Can you please explain that to me? Are you showing in you info how much you pay for your margin account? do you knwo how much it affects your profit?

Additionally, are you considering any tax implication, if you are in the 30% bracket your profit will go down to 2.716% and then you have to add the brokage fee, let say you pay 23.95 per transaction, so profit will be with tax around 2.40%.

Thanks in advanced,

 

[rozella]

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

Rozella can you please explain your numbers to me I do not get them or you are missing some stuff.

Eg:

Initial investment: $10000
Initial Share price: 435.0 = $4.35

Number of shares bought ~ 2299 shares

Dividend paid: $287.375
Sell price: 440.0 = $4.40
Return from sale: $10115.6

So, return = $10115.6 + $287.375 = $10402.975

Profit $10000/$$10402.975 = 0.9612 then (1 - 0.9612) * 100 = 3.88% return

I do not understand much the margin account stuff. Can you please explain that to me? Are you showing in you info how much you pay for your margin account? do you knwo how much it affects your profit?

Additionally, are you considering any tax implication, if you are in the 30% bracket your profit will go down to 2.716% and then you have to add the brokage fee, let say you pay 23.95 per transaction, so profit will be with tax around 2.40%.

Thanks in advanced,

I always show the profit as a gross profit, but I will do it with brokerage & interest below.

with your example:
Buy 2299 shares of TEN @ 435.0 = $10000.65
Marginlender lends 70% = $7000.45
Our money 30% = $3000.20 (our investment)

Dividend 2299 x 12.5 = $287.37
Franking credit = $123.16

Sell 2299 shares x 440.0 = $ 10115.60
Profit on trade 10115.60-10000.65 = $114.95
Total gross profit
$287.37 + $123.16 + $114.95 = $ 525.48
Gross return on investment = 525.48/3000.20 = 17.51%

Brokerage 2 x $33 =$66
Interest @ 8.15%p.a
for 34 days on $7000.45 = $53.14

Net Profit 525.48 - 66.00 - 53.14 = $406.34
Net return on investment = 13.54%

Re tax: If you make profits you have to pay tax, that is another issue.

rozella

 

[Warren Buffet II]

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

Rozella,

Thank you very much for that explanation, it is very clear for me now.

Keep posting

Regards

 

[rozella]

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

Bought CRG today @ 979.0 with a margin of 65%. Investment 342.65/share.
Profit announcement expected approx 2nd Feb with exdiv approx 16th Feb. Last years div this period was 30.0 fully franked.

rozella

 

[rozella]

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

Sold a parcel today of WDC @ 1740.0 Bought on 13th January @ 1697.0 with a margin of 75%. Investment 424.25/share.
Gross profit 43.0/share = 10.13% return on investment. 4 day trade.

Sold another parcel today of WDC @ 1740.0. Bought on 13th January @ 1699.0 with a margin of 75%. Investment 424.75/share.
Gross profit 41.0/share = 9.65% return on investment. 4 day trade.

rozella

 

[Tric]

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

rozella,
good gain on your WDC with it being a short time frame profit (chart shows good bull run too).

This conts to be a very interesting thread and I think the way you have presented your trades in explaining the process is great.

thanks again,

 

[rozella]

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

Thanks Tric,

This is the 2nd round of trades with WDC on the lead up to the profit announcement.....bit of a gamble period atm, so I take the profits as we go, & will re-enter on a pullback.

rozella

 

[rozella]

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

Sold DJW today on the open @ 378.0 Bought on 11th January @ 365.0 with a margin of 70%. Investment 109.5/share. Profit announcement around 4th Feb. Div last year was 10.0 fully franked.
Gross profit 13.0/share = 11.87% return on investment.

rozella