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Dividend, Share Price: Is there a connection?

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

Took some skinny deals on the quarterly LPTs this week 3 wins & 1 loss. MGQ & MGR were wins & have already been posted & were the lions share of profits & also the largest parcels.

Sold MOF today @ 159.0/unit
Bought 14th March @ 156.0/unit with a margin of 70%
Investment 46.80/unit
Exdist 26th March
Distribution 2.80/unit
Gross Profit 3.0/unit = 6.41% return on investment. 9 days

Sold ALZ today @ 219.0/unit
Bought 13th March @ 222.0 with a margin of 70%
Investment 66.60/unit
Exdist 26th March
Distribution 4.0/unit, franking credit TBA
Gross loss 3.0/unit = 4.50% loss on investment. 10 days

Bought another parcel of ZFX today @ 1603.0 with a margin 70%
Investment 480.90/share
Exdiv 30th March
Dividend 70.0/share fully franked 30.0/share.
 
Re: Dividend, Share Price. Is there a connection?

Hi Rozella,

Thanks for your posts. I enjoy following this thread.

Can you say what the typical value is of the parcels you trade? You seem to work on a high volume of trades trying to get just a bit of profit from each. Do you size the trades to the minimise the percentage spent on brokerage? With my nab account the brokerage is 0.11% but the minimum brokerage is $29.95, so I need to trade parcels of more than $27,000 to get down to 0.11%.

Also, what interest rate do you pay on your margin loans? I only try trading occaisionally and often find that if the price doesn't move up soon after I enter, I'm behind just because of the interest on my 7.37% line of credit.

Sorry if you've already answered these questions. Its a long thread now and I haven't gone back through it all.

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

G'day Ferret,

My main broker account is AOT & their brokerage is $33/trade, but you can have 5 trades (say buys) with the same stock on the same day for 1 contract note brokerage of $33....same with the sells. So you can buy the same stock say $30k/parcel on the same day 5 times = $150k for $33 brokerage, or trade in & out all day 5 times for a buy contract of $33 & a sell contract of $33 Most webiress platform providers are the same (I think)

My parcel size varies quite a bit depending on the quality & liquidity of the stock, anything from $20k to $200K (usually the $200k would be in multiple parcels) e.g. big banks would be at the high end & some of the smaller LPTs at the lower end. MGQ was $40k, MGR $33k, yet ALZ & MOF were both $28k

My margin loans vary from 8.65% to 9.15% but I don't find that a great issue, although I should probably renegotiate.

I use a spreadsheet open all day livened up with a DDE link which includes dividends, interest & brokerage for each stock, so I can monitor profit or loss all the time.....with a changing total daily P/L at the bottom......this really helps so that you don't lose sight of interest costs & how this affects the bottom line.
 
Re: Dividend, Share Price. Is there a connection?

Thanks Rozella.

That gives me a good insight into what you are doing.

I don't have any plans to get into full time trading myself, but your information would point me in the right direction if I ever did.

Good luck with it!

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

Sold a parcel of SGM today @ 2390.0
Bought 20th February @ 2265.0 with a margin of 70%
Investment 679.50/share
Dividend announcement 20th February
Exdiv 21st March
Dividend 60.0/share 57% franked 14.66/share
Gross profit 185.0/share = 27.22% return on investment. 34 days
 
Re: Dividend, Share Price. Is there a connection?

Sold another parcel of SGM today @ 2412.0 (1 to go after this)
Bought 14th March @ 2280.0 with a margin of 70%
Investment 684.0/share
Exdiv 21st March
Dividend 60.0/share 57% franked 14.66/share
Gross profit 192.0/share = 28.07% return on investment, excl fc. 13 days.
 
Re: Dividend, Share Price. Is there a connection?

This is an interesting question.

Obviously there is a connection. If it pays a good dividend yield then this should be reflected in the SP.

One would then expect all Share Prices to reflect the same yield but they dont, due to many other factors, eg risk, potential, market position, over buying, speculation, jumping on the bandwagon, under realisation of potential.

There are a plethora of stocks at the moment of which the Share Price is largely reflected on hype and not value. These are the ones to be careful with. Money can be made quick (and most of us have at some stage with these) and can be lost quick (again most of us have at some stage).

The real gift though is to be able to identify those that fit in the under realised category, for you will get consistent excellent return for your money and then no doubt the Share Price eventually has to catch up to this. Consistency is part of the key. One I believe falls in this category is GTP. Look at its yield!

Strategic Potential is another type to look out for. Those that have a high chance of producing excellent reutrns in the future, though have not yet and therefore are discounted until they are proven. Anyone can wait until they are proven, but if yo are good at picking the strategic potential early you can gain. I feel AVO fits into this category (gold reserves vs gold price vs cost of extracting vs market value = undervalued).
 
Re: Dividend, Share Price. Is there a connection?

Bought DJS today @ 467.0 with a margin of 65%
Investment 163.45/share
Exdiv 29th March (tomorrow)
Dividend 9.0/share fully franked 3.86/share
 
Re: Dividend, Share Price. Is there a connection?

Sold a parcel of ZFX today prior to exdiv to balance my holdings @ 1652.0
Bought 9th March @ 1627.0 with a margin of 70%
Investment 488.10/share
Dividend announcement 22nd February
Exdiv 30th March
Dividend 70.0/share fully franked 30.0/share
Gross profit 25.0/share = 5.12% return on investment.

Bought DRT on the close today @ 171.0 with a margin of 70%
Investment 51.30/unit
Announcement expected around 20th June
Exdistribution expected 25th June
Last years distribution was 5.55/unit
 
Re: Dividend, Share Price. Is there a connection?

Hi Rozella,
If you sell on ex-dividend date do you still get dividend payment?
I have ZFX shares which go ex-dividend on 30 Mar which is tomorrow and was curious.
 
Re: Dividend, Share Price. Is there a connection?

Yes, UraniumLover, you can sell as early as the open tomorrow & be entitled to the dividend.

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

I have had a sell order in for WAN since exdiv @ 1555.0, it rose to 1550.0 this morning & I stepped outside to stretch my legs just for a few minutes & it goes to 1570.0....but its hard to pick the top.

Sold WAN today @ 1555.0
Bought 27th February @ 1550.0 with a margin of 70%
Investment 465.0/share
Exdiv 9th March
Dividend 30.0/share fully franked 12.86/share
Gross profit 35.0/share = 7.52% return on investment, excl fc. 31 days
 
Re: Dividend, Share Price. Is there a connection?

Bought CGJ on the close today @ 1611.0 with a margin of 75%
Investment 402.75/share
Exdiv 16th April
Dividend 19.5/share fully franked 8.36/share
 
Re: Dividend, Share Price. Is there a connection?

Bought SGN today @ 312.0 today with a margin of 65%
Investment 109.20/share
Exdiv 30th April
Dividend 9.9/share fully franked 4.24/share
 
Re: Dividend, Share Price. Is there a connection?

Sold a parcel of WOW today @ 2755.0
Bought 1st March @ 2710.0 with a margin of 75%
Investment 677.50/share
Dividend announcement 27th February
Exdiv 22nd March
Dividend 35.0/share fully franked 15.0/share
Gross profit 80.0/share = 11.81% return on investment, excl fc. 34 days

Sold DRT today @ 177.0
Bought 29th March on the close @ 171.0 with a margin of 70%
Investment 51.30/unit
Announcement expected around 20th June
Exdistribution expected 25th June
Last years distribution was 5.55/unit
Gross profit 6.0/unit = 11.70% return on investment. 6 days

Hopefully will re-enter DRT around the 171.0 again
 
Re: Dividend, Share Price. Is there a connection?

What a day !!! Just figuring out what I bought & sold....my CFD account hiked up quite a bit too.

I have a buy order in for IPG @ 237.0 which has been there for a few days now in expectation of a rate hike which did not happen. Also have orders in for CPA, GSA & bought part of MCW @ 208.0 today.

I sold part of DJS today as well, so is a bit messy.

Sold my last 2 parcels of SGM today together, which shot up in a hurry, I was watching so many others that I almost missed it.

Sold SGM on the close @ 2403.0
Bought 2nd February @ 2185.0 with a margin of 70%
Investment 655.5/share
Exdiv 21st March
Dividend was 60.0/share 57% franked 14.65/share
Gross profit 278.0/share = 42.41% return on investment, excl fc. 61 days

Sold SGM on the close @ 2403.0
Bought 19th March @ 2421.0 with a margin of 70%
Investment 726.30/share
Exdiv 21st March
Dividend was 60.0/share 57% franked 14.66/share
Gross profit 42.0/share = 5.78% return on investment, excl fc. 16 days

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

Just back from golf to see that I have sold CGJ in both my margin & CFD accounts.

Sold CGJ today @ 1705.0
Bought 2nd April on the close @ 1611.0 with a margin of 75%
Investment 402.75/share
Exdiv 16th April
Dividend 19.5/share fully franked 8.36/share
Gross profit 94.0/share = 23.34% return on investment. 3 days

The CFDs were better as I bought for 1555.0
 
Re: Dividend, Share Price. Is there a connection?

Sold AMP today @ 1074.0
Bought 26th February @ 1070.0 with a margin of 75%
Investment 267.50/share
Exdiv 9th March
Dividend 21.0/share 85% franked 7.65/share
Gross profit 25.0/share = 9.34% return on investment excl fc. 43 days
 
Re: Dividend, Share Price. Is there a connection?

I am in the cycle of selling a few stocks as they reach my target sells, so that they will fund the bank & LPT buys & am very close to sells on quite a few atm.

Sold most of a parcel of ZFX today on the close @ 1609.0 (the balance I will sell with another parcel later)
Bought 23rd March @ 1603.0 with a margin 70%
Investment 480.90/share
Exdiv 30th March
Dividend 70.0/share fully franked 30.0/share.
Gross profit 76.0/share = 15.80% return on investment excl fc. 18 days
 
Re: Dividend, Share Price. Is there a connection?

Hi Rozella
have been following this column with interest for some time but am just a newbie (as you can tell by my post total!) - could you explain a bit about the maths in the following:


I can only get your percentage return to work if you use the buy price for the ZFX as $4.8090. Are you dealing in Instalment warrants or shares?
 
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