Australian (ASX) Stock Market Forum

Dividend, Share Price: Is there a connection?

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

rozella said:
I am not interested very much about the history of a stock & do not read any analyst or broker reports. I only read applicable company reports.
rozella said:
In my experience, when you start to read the company reports, that is when the price has gone up and it is "a bit" too late. Do you DYOR even before the company released their annual/quarterly result ?

The basis of my strategy is The lure of the dividend gives a stock a reason to rise

I totally agree with you on your strategy. I think the same way as well.

IMO, for stocks with 100% franking, usually they drop more than the div itself. From your experience, do they bounce back 2-3 weeks after ex.div? Because with my exp with WBC, after their ex div, it took them more than 2 month to recover from their previous high, which in turn actually making me losing money!


rozella said:
Dividend trading is not everyones "cup of tea" but has served me well over the last 8/9 years with very good returns.

For me personally, recently I did better in dividend yield rather than the stock trading itself but I do not do all company for their div, only certain stocks that I think is good.
 
Re: Dividend, Share Price. Is there a connection?

Rozella,

Sorry for wrongly quoting you on previous post, just realised it when I read it by then it is too late too change
 
Re: Dividend, Share Price. Is there a connection?

G'day j4mesa,

IMO, for stocks with 100% franking, usually they drop more than the div itself. From your experience, do they bounce back 2-3 weeks after ex.div? Because with my exp with WBC, after their ex div, it took them more than 2 month to recover from their previous high, which in turn actually making me losing money!
They don't always behave the same way each time, this is where you must make a decision whether it is better to sell before the price reaches your target sell & just be happy with an amount of a bit less than the dividend & move onto the next deal or wait longer. The more times you can churn a dividend with the same capital, the more profitable you should be.
 
Re: Dividend, Share Price. Is there a connection?

Rozella

Interested in your thoughts on GUD. They are ex Div on 19th Feb at 27c 100% franked. Would they measure up as an opportunity based on your guidelines?

I am trying to understand your processes. Thanks
 
Re: Dividend, Share Price. Is there a connection?

TheAbyss said:
Rozella

Interested in your thoughts on GUD. They are ex Div on 19th Feb at 27c 100% franked. Would they measure up as an opportunity based on your guidelines?

I am trying to understand your processes. Thanks
Well I am holding GUD, however, I should have sold when it climbed back to 833.0 the day after the report & moved onto another deal. I bought at 835.0 on 24th Jan. My intial stoploss was 810.0, then trailed to 819.0.....& today it has closed at 809.0

Profit down 26.44% & no increase in dividend. It has a on-market share buyback program of up to 5% of issued capital over the next 12 months which may help, but this is for longer term holders than me.

With a stock like GUD which I have traded many times, I don't like to have a large holding (3% of my holdings max) so being a little under my stoploss it does not worry me & it appears to be starting to improve.

We will see how it performs from now to exdiv date.....I might bail out prior to exdiv as I don't want to be waiting months for it to return to my target sell price.

The old test for whether to hold on longer......would I buy it at todays price knowing what was in the report ?
If no, then I must sell now.
If yes, then why sell it.
It held up quite well today so I will hold a bit longer & see which way it jumps.

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

rozella said:
They don't always behave the same way each time, this is where you must make a decision whether it is better to sell before the price reaches your target sell & just be happy with an amount of a bit less than the dividend & move onto the next deal or wait longer.

Hi Rozella,

thank you for your information.....
can I ask you another question please ?
how do you make your decision usually of whether to sell b4 ex-div or wait till
it come back to their sp b4 ex-div.

Just to share info with you, I usually make that decision by checking their chart history around ex-div time.

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

G'day j4mesa,

can I ask you another question please ?
how do you make your decision usually of whether to sell b4 ex-div or wait till
it come back to their sp b4 ex-div
I am aiming to achieve at least the dividend or an amount equal to the dividend, so if I am already on target with dividends to support my monthly salary, & the stock has risen an amount equal to the dividend, I may as well take the profits prior to exdiv & have my working capital back to do another deal. This way the cycle is quicker & I am churning more "dividends" with the same capital.

With stocks like WDC & CBA, I have traded each in & out about 3 times this round, but they are in my plan to take the dividend this time. WDC goes exdist tomorrow, so I won't be selling before then, however, CBA does not go exdiv until 20th Feb, so there is possibly another trade prior to then, but it depends on the market circumstances.

GUD is a different story, I will be selling prior to exdiv as I don't trust it.....after exdiv it could take ages to recover......but nothing surprises me in this business.
 
Re: Dividend, Share Price. Is there a connection?

Sold ANZ today @ 2985.0
Bought on 3rd November @ 2961.0 with a margin of 75%
Investment 740.25/share
Reported 26th October, exdiv 9th November, dividend 69.0/share fully franked 29.57/share
Gross profit 122.57/share = 16.56% return on investment. 95 days (too long)

Bought WAN today @ 1326.0 with a margin of 70%
Investment 397.80/share
Expected to report Friday 8th February
Expected exdiv date around 12th March
Last years dividend was 22.0/share fully franked 9.43/share
 
Re: Dividend, Share Price. Is there a connection?

CFD :

Sell AWC today @ 6.78 for 3000 units
div 12 c


Buy WDC today @ 22.57 FOR 2000 units
est. div 52 c
 
Re: Dividend, Share Price. Is there a connection?

Sold TLSCA today @ 295.0
Bought 25th January @ 285.0 with a margin of 80%
Investment 57.0/share
Dividend announcement expected 15th February
Exdiv date expected 26th February
Last years dividend was 14.0/share fully franked 6.0/share
Gross profit 10.0/share = 17.54% return on investment. 13 days
 
Re: Dividend, Share Price. Is there a connection?

At this time, 12 : 27 pm WDC is droppping only abit compare to their dividends....
 
Re: Dividend, Share Price. Is there a connection?

Sold 2 parcels of WDC today

Sold WDC today @ 2240.0
Bought 1st February @ 2228.0 with a margin of 75%
Investment 557.0/share
Exdistribution date 7th February. (today)
Distribution was 52.0/unit, franking TBA
Gross profit 64.0/unit = 11.49% return on investment. 6 days

Sold WDC today @ 2240.0
Bought 1st February @ 2226.0 with a margin of 75%
Investment 556.5/share
Exdistribution date 7th February. (today)
Distribution was 52.0/unit, franking TBA
Gross profit 66.0/unit = 11.86% return on investment. 6 days
 
Re: Dividend, Share Price. Is there a connection?

Bought SUN today @ 2184.0 with a margin of 75%
Investment 546.0/share
Dividend announcement expected around 20th February
Exdiv expected 1st March
Last years dividend was 47.0/share fully franked 20.14/share.
 
Re: Dividend, Share Price. Is there a connection?

Sold CBA on the close @ 5128.0
Bought 29th January @ 4991.0 with a margin of 75%
Investment 1247.75/share
Dividend announcement expected 14th February
Exdiv expected 20th February
Last years dividend was 94.0/share fully franked.
Gross profit 137.0/share = 10.98% return on investment. 9 days
 
Re: Dividend, Share Price. Is there a connection?

Re-entered CBA today @ 5100.0 with a margin of 75%
Investment 1275.0/share
Dividend announcement expected 14th February
Exdiv expected 20th February
Last years dividend was 94.0/share fully franked 40.29/share.

Bought TAH today @ 1763.0 with a margin of 70%
Investment 528.9/share
Dividend announcement expected 21st February
Exdiv expected 27th February
Last years dividend was 44.0/share fully franked 18.86/share.
 
Re: Dividend, Share Price. Is there a connection?

Bought another parcel of CBA today @ 5085.0 with a margin of 75%
Investment 1271.25/share
Dividend announcement expected 14th February
Exdiv expected 20th February
Last years dividend was 94.0/share fully franked 40.29/share.

Sold WAN today @ 1360.0
Bought 6th February @ 1326.0 with a margin of 70%
Investment 397.80/share
Expected to report Friday 8th February
Expected exdiv date around 12th March
Last years dividend was 22.0/share fully franked 9.43/share
Gross profit 34.0/share = 8.55% return on investment. 2 days
 
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