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Dividend, Share Price: Is there a connection?

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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.
Click to expand...

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.
Click to expand...

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,

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
Click to expand...
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?

Thanks Rozella. I might dip my feet for a while.
 
Re: Dividend, Share Price. Is there a connection?


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
Click to expand...
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?

Thank you for sharing your information........
 
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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