Dividend, Share Price: Is there a connection?

[rozella]

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

G'day ozambersand,

Your maths are right as the $4.8090 is the investment.

The calculation is based on marginlending. I am borrowing 70% of the purchase price of 1603.0/share, so my investment is 480.90/share being the remaining 30%.

So the return on investment is 76.0 (profit) divided by 480.90 (the investment) = 0.158 or 15.80%

I am not interested in the increase between buy & sell prices so much, only the percentage that my own cash increases & I try to turn over the same cash as many times as possible in the shortest possible time frame.

Congrats on your 1st post.

Cheers,

 

[rozella]

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

Sold balance of DJS on the open today @ 470.0 averaging the parcel @ 468.7
Bought 28th March @ 467.0 with a margin of 65%
Investment 163.45/share
Exdiv 29th March
Dividend 9.0/share fully franked 3.86/share
Gross profit 10.7/share = 6.55% return on investment, excl fc. 14 days

Forgot to delete the balance of ZFX order sold on close yesterday, so sold on open today @ 1616.0 (7 cents more)

 

[ozambersand]

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

Thanks for the reply Rozella.

I am curious as to whether you have considered using Installment warrants rather than margin lending.

Have you ever done any comparisons on the advantages and disadvantages of each method?

 

[rozella]

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

G'day ozambersand,

I find marginlending more flexible. I traded installment warrants quite a while ago but prefer marginlending.

The ASX promote warrants all the time.

There are many that prefer warrants, but they are not for me unless it is for my super account.

rozella

 

[rozella]

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

Bought JST yesterday @ 445.0 with a margin of 60%
Investment 178.0/share
Exdiv 7th May
Dividend 9.5/share fully franked 4.07/share

Bought GPT today @ 504.0 with a margin of 70%
Investment 151.2/unit
Announcement expected late April
Exdist last year was 8th May
Distribution last year was 6.70/unit zero franked.

Sold WOW today @ 2820.0
Bought 13th March @ 2794.0 with a margin of 75%
Investment 698.50/share
Exdiv 22nd March
Dividend 35.0/share fully franked 15.0/share
Gross profit 61.0/share = 8.73% return on investment, excl fc. 31 days

 

[rozella]

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

Bought LNN today @ 915.0 with a margin of 70%
Investment 274.5/share
Exdiv expected about 29th May
Last years dividend was 19.0/share

 

[rozella]

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

Sold SGN today @ 334.0
Bought 3rd April @ 312.0 today with a margin of 65%
Investment 109.20/share
Exdiv 30th April
Dividend 9.9/share fully franked 4.24/share
Gross profit 22.0/share = 20.14% return on investment. 13 days

 

[rozella]

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

Re-entered SGN today @ 325.0 with a margin of 65%
Investment 113.75/share
Exdiv 30th April
Dividend 9.9/share fully franked 4.24/share

 

[rozella]

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

Sold GPT today @ 514.0
Bought 13th April @ 504.0 with a margin of 70%
Investment 151.2/unit
Announcement expected late April
Exdist last year was 8th May
Distribution last year was 6.70/unit zero franked.
Gross profit 10.0/unit = 6.61% return on investment. 5 days

Back in the que to buy @ 504.0

 

[rozella]

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

Sold JST today @ 459.0
Bought 13th April @ 445.0 with a margin of 60%
Investment 178.0/share
Exdiv 7th May
Dividend 9.5/share fully franked 4.07/share
Gross profit 14.0/share = 7.86% return on investment. 5 days

 

[rozella]

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

Bought back into GPT today while I was at golf this morning @ 504.0.....of course it continued falling to 494.0.....that is the penalty of enjoying oneself. Margin 70%
Investment 151.2/unit
Announcement expected late April
Exdist last year was 8th May
Distribution last year was 6.70/unit zero franked.

Bought SGN @ 324.0 with a margin of 65%
Investment 113.4/share
Exdiv 30th April
Dividend 9.9/share fully franked 4.24/share
Looks like it might fall a bit more now.

 

[rozella]

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

Bought ANZ today @ 3095.0 with a margin of 75%
Investment 773.75/share
Dividend announcement expected 26th April
Exdiv expected 14th May
Last years dividend was 56.0/share fully franked 24.0/share

 

[rozella]

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

Bought CFX today @ 228.0 with a margin of 70%
Investment 68.4/unit
Distribution announcement expected about 21st June
Exdist expected 25th June
Last years dist was 5.64/unit zero franked

Buying earlier than usual so may have a few trades before exdist.

 

[rozella]

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

Bought JST again today @ 445.0 with a margin of 60%
Investment 178.0/share
Exdiv 7th May
Dividend 9.5/share fully franked 4.07/share

Bought SGB today @ 3635.0 with a margin of 75%
Investment 908.75/share
Dividend announcement expected 1st May
Exdiv expected 13th June
Last years dividend was 74.0/share fully franked 31.71/share

Bought WBC today @ 2709.0 with a margin of 75%
Investment 677.25/share
Dividend announcement expected 3rd May
Exdiv expected 17th May
Last years dividend was 56.0/share fully franked 24.0/share

 

[rozella]

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

Sold a parcel of ZFX today @ 1652.0
Bought 13th March @ 1631.0 with a margin of 70%
Investment 489.30/share
Exdiv 30th March
Dividend 70.0/share fully franked 30.0/share
Gross profit 91.0/share = 18.60% return on investment. 44 days

Bought another parcel of ANZ today @ 3095.0 with a margin of 75%
Investment 773.75/share
Announced today.
Exdiv 14th May
Dividend 62.0/share fully franked 26.57/share

 

[flinders]

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

hi there, been watching your post re your particular way of trading/investments.re ZFX curious to know why you sold out just b4 the 45 days ? with regards franking .credit.

 

[rozella]

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

G'day flinders,

I have been asked basically the same question on another forum & here is my answer.

The answer is partly mathematical, ZFX has a LVR of 70% & ANZ is 75%. We are comparing 30 cents definite gain with ZFX against a possible 47 cents rise with ANZ in the next 2 trading days plus the leadup to the dividend plus the dividend.

My experiences tell me to take the profit now on ZFX before it drops again in the short term & use it to fund the ANZ purchase. I still have another ZFX parcel I bought @ 1688.0

My average holdings this FY is 20.34 days with 202 purchases & capital turned over 39.64 times. I have found that holding stocks waiting for the 45 days plus the buy/sell days eats into profits & reduces earning power on additional trades. I still receive some franking credits but not a lot.

This is my way of maximising my profits & something that I have learnt over a period of time & does not mean that this will suit everyones profile. Individual profits on a trade mean nothing....its the profits per week, month, years that count.

 

[rozella]

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

Sold LNN today @ 942.0
Bought 13th April @ 915.0 with a margin of 70%
Investment 274.5/share
Exdiv expected about 29th May
Last years dividend was 19.0/share
Gross profit 27.0/share = 9.83% return on investment. 19 days

 

[rozella]

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

Sold my last parcel of ZFX today on the close @ 1697.0
Bought 1st March on the open @ 1688.0 with a margin of 70%
Investment 506.40/share
Dividend announcement 22nd February
Exdiv 30th March
Dividend 70.0/share fully franked 30.0/share
Gross profit 109.0/share = 21.52% return on investment. 62 days

Bought ENV today @ 123.0/unit with a margin of 65%
Investment 43.05/unit
Exdist date 7th May
Distribution 3.8/unit zero franked

 

[rozella]

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

Bought WBC today on the close @ 2720.0 witha margin of 75%
Investment 680.0/share
Profit announcement today
Exdiv 17th May
Dividend 63.0/share fully franked 27.0/share