G'day j4mesa,Hi Don,
how was ur div trading going so far....
Has not gone into div trade for quite awhile.
Will now be looking into...
Missed LNN yesterday at its low......
no more caps
G'day j4mesa,
I don't quite understand all your shorthand jargon, but yes, my dividend trading is travelling as per the normal plan, although I have mixed in CFDs as well on the high rollers (don't post those trades)
I am trying to get set with the LPTs for this round, but they are steaming ahead of me, still, there is plenty of time yet.
Its been one of my better years & my dividend margin trading has produced around 90% return on capital for the year after interest, brokerage & dividends.....usually 30% to 60% for most years....this is for realised trades.
Looks like I am the same....sorry.- My apology for my bad english
- High rollers, do you mean high earnings ?
- LPT : Listed Property Trust ???? What is that for towards the dividend trading
Yes you are right that the stock usually drops the dividend amount, however, when shorting a stock the system works in reverse, & the shorter pays the dividend. The easiest way to short a stock is with CFDs & when holding a position over exdiv day, the dividend amount is deducted from your account....so it is not that simple.....I wish it was, it would almost be stealing....but, is it a possible strategy to short a stock while it goes ex-dividend, to take advantage as the stock goes down from paying the share holders, is there any other major risk involved?
You can buy on the close the day before exdiv & sell on the open on exdiv day to be entitled to the dividend. It is the franking credit part that must comply with the 45 day rule & individuals have an exemption from this to trade under 45 days providing that their total franking credits for the year do not exceed $5000. $5001 & you forfeit all the franking credits that don't comply with the 45 day rule & can only claim those over the 45 days clear of the buy & sell days.Also, is there a time limit on how long you need to hold stocks to take advandage of company dividend pay outs, do you have to hold the stock a certain amount of time to be intitled to dividends, or is the money you need to make it worth while not worth the risk?
I don't think there is much of a pattern as a lot depends on the market on exdiv day. Yesterday was a 56 pointer so there was a good probability that LNN would fare okay. I knew I would be away from the monitor all day, so I placed the orders at 7:30am knowing that the DOW shrugged off China's drop & it paid off.Rozella, do you find the cheaper stocks that don't pay a big dividend in cash terms but do when you look at yield, actually hold up better through the dividend?
Sometimes there is only a small window of opportunity to take a sell at a good price with the banks, so you must do your calcs if you are marginlending, as sometimes it costs more than the franking credit to wait the distance either with interest or a drop in price or both.I bought Westpac and NABS and they currently SUCK! (I'm waiting for the 47 days though so am not panicking ......yet!)
I think dividend trading is becoming stronger. Shares are changing hands more often but still the same amount of shares & the prices are increasing...why would they become concerned ?.....I don't think there is any problem with this....the brokers would also be happy.Do you think the ability to be in and out with dividend plays is guaranteed to continue or will companies get jack of it?
What happens if you sell on ex-dividend date and the settlement of the trade is done before the record date? Do you lose your entitlement to the dividend?Books close
When a company declares a dividend, in addition to the amount per share, it also declares a books closing date (the record date). This means that all shareholders who are on the company's share register at that date will receive the dividend.
But in order to be on the share register at that date, investors need to have bought the shares at least three business days earlier. It's all to do with what's known as T+3 settlement. When investors buy shares through their broker, the moment the trade is executed the investor is the economic owner of the stock and gains, or loses, from movements in its price.
But the actual day the trade is settled - when money is exchanged and the stock transferred from seller to buyer - doesn't occur until three business days after the trade is executed.
This gives the people whose job it is to execute settlement a chance to iron out any problems or disputes before settlement day. So, in order to hold stock on the books closing date, and therefore receive the dividend, you need to have bought it three business days earlier. Intelligent Investor
Shares sold ex-dividend entitle the seller to retain the current dividend. Shares are usually quoted ex-dividend four business days before company’s book close
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