Dividend, Share Price: Is there a connection?
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Re: Dividend, Share Price. Is there a connection?
My last post should read LNN not LLN
Bought another parcel of LNN today @ 916.0 with a margin of 75%
Investment 229.0/share
Exdiv expected about 29th May
Last years dividend was 19.0/share fully franked 8.14/share
My last post should read LNN not LLN
Bought another parcel of LNN today @ 916.0 with a margin of 75%
Investment 229.0/share
Exdiv expected about 29th May
Last years dividend was 19.0/share fully franked 8.14/share
Re: Dividend, Share Price. Is there a connection?
Bought SGP today @ 858.0 with a margin of 80%
Investment 171.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Bought SGP today @ 858.0 with a margin of 80%
Investment 171.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Re: Dividend, Share Price. Is there a connection?
G'day robots,
The LPT sector has been outperforming the rest for about a decade. Next month most of the banks & LPTs go exdiv so many are taking positions atm.
The LPTs that pay 6 monthly of course rise in the leadup more than the quarterly payers & they were the ones today that mostly took a leap.
CER 3.7%
CFX 0.4%
CNP 2.6%
CPA 2.7%
DRT 2.5%
MCW -0.5%
SGP 0.9%
There is good trading in LPTs if you can stay in synch. WDC is 3 times the market cap of the next 3 & it won't go exdist until August.
G'day robots,
The LPT sector has been outperforming the rest for about a decade. Next month most of the banks & LPTs go exdiv so many are taking positions atm.
The LPTs that pay 6 monthly of course rise in the leadup more than the quarterly payers & they were the ones today that mostly took a leap.
CER 3.7%
CFX 0.4%
CNP 2.6%
CPA 2.7%
DRT 2.5%
MCW -0.5%
SGP 0.9%
There is good trading in LPTs if you can stay in synch. WDC is 3 times the market cap of the next 3 & it won't go exdist until August.
Re: Dividend, Share Price. Is there a connection?
Sold GPT today @ 506.0
Bought 19th April @ 504.0 with a margin of 70% (now 80%)
Investment 151.2/unit (now 100.8/unit)
Exdist 3rd May
Distribution 7.0/unit zero franked.
Gross profit 9.0/unit = 8.93% return on investment based on new margin. 20 days
Sold GPT today @ 506.0
Bought 19th April @ 504.0 with a margin of 70% (now 80%)
Investment 151.2/unit (now 100.8/unit)
Exdist 3rd May
Distribution 7.0/unit zero franked.
Gross profit 9.0/unit = 8.93% return on investment based on new margin. 20 days
Re: Dividend, Share Price. Is there a connection?
Sold CFX today @ 235.0
Bought 20th April @ 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
Gross profit 7.0/unit = 10.23% return on investment. 19 days
Will re-enter on a drop
Sold CFX today @ 235.0
Bought 20th April @ 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
Gross profit 7.0/unit = 10.23% return on investment. 19 days
Will re-enter on a drop
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Re: Dividend, Share Price. Is there a connection?
Hi Rozella, been reading some of the back posts on this thread and have a couple of questions:
1. Have you ever analysed the profits you make just trading the upturn before the dividend and the profit made from the actual dividend (and franking credit). What would be the proportion of each in your portfolio?
2. Looking at your choice of stocks to deal in in 2005 and 2006, there are some similarities but other differences, do you alter the ones you choose on dividend or whether you think the stock is underpriced at the time?
3. Have you ever looked at trading the upturn after the dividend? (ie for those with big dividends and franking credits buy at the bottom after the dividend and get some recovery?
4. What do you do in July when there aren't any dividends to play with?
Hi Rozella, been reading some of the back posts on this thread and have a couple of questions:
1. Have you ever analysed the profits you make just trading the upturn before the dividend and the profit made from the actual dividend (and franking credit). What would be the proportion of each in your portfolio?
2. Looking at your choice of stocks to deal in in 2005 and 2006, there are some similarities but other differences, do you alter the ones you choose on dividend or whether you think the stock is underpriced at the time?
3. Have you ever looked at trading the upturn after the dividend? (ie for those with big dividends and franking credits buy at the bottom after the dividend and get some recovery?
4. What do you do in July when there aren't any dividends to play with?
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Re: Dividend, Share Price. Is there a connection?
Good questions, I was wondering the same.....?
Good questions, I was wondering the same.....?
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Re: Dividend, Share Price. Is there a connection?
And a couple of others things are confusing me (not difficult)
1. On your website,the ATO ruling includes in part:
Does this ONLY relate to the holding of put warrants at the same time you own shares? (I gather they look at cumulative deltas, so that you can't "insure" your shares with warrants because if you do, they are not "at risk".)
For example could the buying and selling shares in the run up to the dividend or on the bounce back afterwards (but not through) also fall into this category of affecting the "risk" of the parcel of shares attracting the dividend?
2. How does the "last in, first out rule" affect your ability to claim franking credits when you do a number of purchases and sales in the lead up?
3. Is it correct that once you have broken the 45 day rule with one parcel of shares in a tax year and can't count the franking credit on that dividend, all your different companies' dividends are affected? (Assuming you have >$5000 in franking credits)
And a couple of others things are confusing me (not difficult)
1. On your website,the ATO ruling includes in part:
Does this ONLY relate to the holding of put warrants at the same time you own shares? (I gather they look at cumulative deltas, so that you can't "insure" your shares with warrants because if you do, they are not "at risk".)
For example could the buying and selling shares in the run up to the dividend or on the bounce back afterwards (but not through) also fall into this category of affecting the "risk" of the parcel of shares attracting the dividend?
2. How does the "last in, first out rule" affect your ability to claim franking credits when you do a number of purchases and sales in the lead up?
3. Is it correct that once you have broken the 45 day rule with one parcel of shares in a tax year and can't count the franking credit on that dividend, all your different companies' dividends are affected? (Assuming you have >$5000 in franking credits)
Re: Dividend, Share Price. Is there a connection?
G'day Ozambersand & Buffettology,
I will answer what I can now as I am off to golf at 6:20am & will answer the rest about midday.
It has been a good year & profit ytd is 88.01% on capital at the beginning of this FY after interest & brokerage.
Sorry have to go....will continue later.
G'day Ozambersand & Buffettology,
I will answer what I can now as I am off to golf at 6:20am & will answer the rest about midday.
This FY atm, dividends & franking credits are 57.04% of total profit after interest & brokerage. So trading profit is 42.96% of my total profit.
It has been a good year & profit ytd is 88.01% on capital at the beginning of this FY after interest & brokerage.
My selections are firstly mathematically based. i.e. if they have a yield for the proposed payment of 10% or greater after marginlending, then they are a prospect & are worth watching. Sometimes I might take a more skinny deal such as GPT recently, but you will notice that I traded it twice with the last time for the dividend. The price must be relative to the dividend, so a lot of the time the same stocks keep appearing year after year.
Sorry have to go....will continue later.
Re: Dividend, Share Price. Is there a connection?
Should have stayed & traded....my golf was terrible.
Cheers
Should have stayed & traded....my golf was terrible.
Yes, this is what I call section 4 of my strategy, but the market has been so good lately that I have opted for the other sections as they are more lucrative.
There are always some stocks going exdividend, & July is a good buying time for those stocks going exdiv in August. Also I am looking for a sell on those banks & LPTs that went exdiv in June....always plenty to do.
You void franking credits if you take out the risk by shorting, hedging warrants etc. If you do this you take away too much profit when a simple stoploss can do the job. I have never needed to worry about this, but I think it is a bit of a grey area.
I rarely receive franking credits because my average trade is 20.62 days, my personal total franking credits exceed $5000 so I have no exemption & also my company, as any company is not entitled to excemptions, so therefore franking credits can only be gained for trades that comply with the 45 day holding rule. So the last in first out rule does not mean much to me.
Once your total franking credits (from all stocks together) exceed $5000 in any FY, you will forfeit all the franking credits for stocks traded under the 45 day rule (you lose your exemption) & can only claim for those trades that comply with the rule which is 45 days clear of the buy & sell days.
Cheers
Re: Dividend, Share Price. Is there a connection?
Bought NAB on the open today @ 4335.0 with a margin of 75%
Investment 1083.75/share
Reported today
Exdiv 1st June
Dividend 87.0/share 90% franked
Sold SGP today @ 885.0
Bought 7th May @ 858.0 with a margin of 80%
Investment 171.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Gross profit 27.0/unit = 15.73% return on investment. 3 days
SGP went on to 895.0 but that is the penalty of playing golf instead of watching.
Bought NAB on the open today @ 4335.0 with a margin of 75%
Investment 1083.75/share
Reported today
Exdiv 1st June
Dividend 87.0/share 90% franked
Sold SGP today @ 885.0
Bought 7th May @ 858.0 with a margin of 80%
Investment 171.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Gross profit 27.0/unit = 15.73% return on investment. 3 days
SGP went on to 895.0 but that is the penalty of playing golf instead of watching.
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Re: Dividend, Share Price. Is there a connection?
Thanks for answering my queries Rozella. Sorry to hear the golf was bad.
Maybe I should have played golf! Instead, I angsted all day about whether or not to sell my Zinifex warrants!!!!!
In the end I sold some.
My question about hedging is because I bought a parcel just before they went ex-dividend, hence they were pretty high. I was worried when they went down so low afterwards that they may not regain the buy price before the warrant ran out, so I bought more when they were low and brought my average down a lot.
In the end, selling today I made 31% on my average price plus the dividend on the ones I bought pre-dividend, so I am happy. Mind you they'll probably go higher tomorrow and I'll be kicking myself!
This year, I don't have to worry about exceeding the $5000 franking credit quota, but I was wondering whether buying extra afterwards would affect my eligibility. Does that qualify as "hedging?"
I must admit I am not too sure abut the exact meaning of the terms "hedging" and "shorting" as I have heard both used in different scenarios so am a bit confused.
Thanks for answering my queries Rozella. Sorry to hear the golf was bad.
Maybe I should have played golf! Instead, I angsted all day about whether or not to sell my Zinifex warrants!!!!!
In the end I sold some.
My question about hedging is because I bought a parcel just before they went ex-dividend, hence they were pretty high. I was worried when they went down so low afterwards that they may not regain the buy price before the warrant ran out, so I bought more when they were low and brought my average down a lot.
In the end, selling today I made 31% on my average price plus the dividend on the ones I bought pre-dividend, so I am happy. Mind you they'll probably go higher tomorrow and I'll be kicking myself!
This year, I don't have to worry about exceeding the $5000 franking credit quota, but I was wondering whether buying extra afterwards would affect my eligibility. Does that qualify as "hedging?"
I must admit I am not too sure abut the exact meaning of the terms "hedging" and "shorting" as I have heard both used in different scenarios so am a bit confused.
Re: Dividend, Share Price. Is there a connection?
G'day ozambersand,
Buying more stocks does not jeopardise your entitlement to franking credits because of risk, before or after exdividend day if that is what you mean, as you still have risk of the price dropping.
G'day ozambersand,
I think this is what the ATO means.
Buying more stocks does not jeopardise your entitlement to franking credits because of risk, before or after exdividend day if that is what you mean, as you still have risk of the price dropping.
Thats great. Maybe they will go higher & maybe they won't, but you made the decision at the time, so thats that....you can always re-enter if you were wrong or move onto the next deal, depending on your strategy.
Re: Dividend, Share Price. Is there a connection?
Sold some dead wood today
Sold MMA today @ 102.5
Bought 2nd March on the close @ 112.0 (I have not traded this one before so went easy on it with 13000, the only trade on the close) with a margin of 75%
Investment 28.0/share
Exdiv 5th March (Monday)
Dividend 4.0/share fully franked 1.71/share
Gross loss 3.79/share = 13.53% loss on investment, incl fc. 70 days
Funds are better off in a LPT
Sold some dead wood today
Sold MMA today @ 102.5
Bought 2nd March on the close @ 112.0 (I have not traded this one before so went easy on it with 13000, the only trade on the close) with a margin of 75%
Investment 28.0/share
Exdiv 5th March (Monday)
Dividend 4.0/share fully franked 1.71/share
Gross loss 3.79/share = 13.53% loss on investment, incl fc. 70 days
Funds are better off in a LPT
Re: Dividend, Share Price. Is there a connection?
Re-entered SGP on the open today @ 873.0 with a margin of 80%
Investment 174.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Re-entered SGP on the open today @ 873.0 with a margin of 80%
Investment 174.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Re: Dividend, Share Price. Is there a connection?
Sold SGP today @ 896.0
Bought 14th May @ 873.0 with a margin of 80%
Investment 174.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Gross profit 23.0/unit = 13.17% return on investment. 2 days
I will re-enter on a low day if opportunity arises
Sold SGP today @ 896.0
Bought 14th May @ 873.0 with a margin of 80%
Investment 174.6/unit
Distribution announcement expected 21st June
Exdist expected 25th June
Last years dist was 20.9/unit 19.65% franked 1.87/unit
Gross profit 23.0/unit = 13.17% return on investment. 2 days
I will re-enter on a low day if opportunity arises
Re: Dividend, Share Price. Is there a connection?
Bought 2 separate parcels of WBC today.
Bought WBC @ 2749.0 with a margin of 75%
Investment 687.25/share
Exdiv 17th May (tomorrow)
Dividend 63.0/share fully franked 27.0/share
Bought WBC @ 2749.0 with a margin of 75%
Investment 687.25/share
Exdiv 17th May (tomorrow)
Dividend 63.0/share fully franked 27.0/share
Bought 2 separate parcels of WBC today.
Bought WBC @ 2749.0 with a margin of 75%
Investment 687.25/share
Exdiv 17th May (tomorrow)
Dividend 63.0/share fully franked 27.0/share
Bought WBC @ 2749.0 with a margin of 75%
Investment 687.25/share
Exdiv 17th May (tomorrow)
Dividend 63.0/share fully franked 27.0/share
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