Dividend, Share Price: Is there a connection?

[rozella]

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

Bought 2 parcels of WDC on the close today. (different tax entities)

Bought WDC today @ 1905.0 with a margin of 80%
Investment 381.0/unit
Exdiv 8th August,
Distribution 53.25/unit, franking TBA

Bought WDC today @ 1905.0 with a margin of 80%
Investment 381.0/unit
Exdiv 8th August,
Distribution 53.25/unit, franking TBA

 

[rozella]

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

Bought another parcel of ALS today @ 1401.0 with a margin of 65%
Investment 490.35/share
Exdiv date 14th August
Dividend 36.0/share fully franked 15.43/share

 

[j4mesa]

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

Hi Don,

I am eyeing that share for div trade as well.
But feel worried as market is uncertain at the moment.....anything can happen
But as the is div trade,the tendency to stay around that level 14.00 mark is pretty strong...........you are buying at the right price
I missed that 14 dollars mark....

Good luck Don

 

[rozella]

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

Bought another parcel of WDC today @ 1886.0 with a margin of 80%
Investment 377.2/share
Exdiv 8th August,
Distribution 53.25/unit, franking TBA

 

[ozambersand]

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

Rozella, do you think Wesfarmers will pay a dividend this month? They usually go ex-dividend on 21st August.

Also, last time they had a dividend of $1.50. Any speculation on what they would do this year? Would they reduce it so they could pay for Coles? Or would they announce a good one, hoping to attract back investors to get their share price up to ensure the purchase of Coles goes through?

By the way, my Lions Nathan dividend came through so I'm happy about that.

I am also learning a lot. I can see why you don't wait for franking credits as the interest payment incorporated into warrants is more than the income from those. Mind you as interest can be claimed as a taxable deduction on gross and franking credits count as tax paid, there are some advantages of waiting.

Not going to wait for them in the future!

I also worked out that the interest on warrants (and time decay) is more than margin lending interest rates. Now, only advantage left for warrants is the re-sale guarantee to a market maker based on the share's offer and buy price. The way they change the delta though is making me wonder if that is worth it.

I am still wondering if it is wise to try dividend yield plays in a market that is looking decidely bearish. Have you been doing it long enough to experience a long term bear market?

Also just noticed this on the Westfield webpage?

The announcement of the Westfield Group’s results for the six months ended 30 June 2007 (and lodgement of the Appendix 4D) will be made on Wednesday, 29 August 2007. That announcement will include final confirmation of the distribution for that period.

Does this relate to the 53.25 cent dividend with an ex-div date of 8th August? Could they change it?

 

[rozella]

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

G'day ozambersand,

Rozella, do you think Wesfarmers will pay a dividend this month? They usually go ex-dividend on 21st August.

They should announce profit & dividend on 16th August, but this is subject to change. Last year they were quoted exdividend on the 21st August, & the dividend was 150.0 fully franked. I use the previous year as a guide only.

I am also learning a lot. I can see why you don't wait for franking credits as the interest payment incorporated into warrants is more than the income from those. Mind you as interest can be claimed as a taxable deduction on gross and franking credits count as tax paid, there are some advantages of waiting.

Not going to wait for them in the future!

Yes it can be false economy. Why wait the time if your price is already at your target sell & run the risk of the share price falling more than the franking credit.

I am still wondering if it is wise to try dividend yield plays in a market that is looking decidely bearish. Have you been doing it long enough to experience a long term bear market?

Almost 10 years & have never been even close to a negative year.

Also just noticed this on the Westfield webpage?

Quote:
The announcement of the Westfield Group’s results for the six months ended 30 June 2007 (and lodgement of the Appendix 4D) will be made on Wednesday, 29 August 2007. That announcement will include final confirmation of the distribution for that period.

Does this relate to the 53.25 cent dividend with an ex-div date of 8th August? Could they change it?

Property trusts always do it as an estimate, but I have never seen a change in distribution announced at their meeting. Atm we don't know if there is any franking....that will be announced on the 29th August. The probability that the distribution will be confirmed as 53.25/unit is very high.

 

[ozambersand]

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

Yes it can be false economy. Why wait the time if your price is already at your target sell & run the risk of the share price falling more than the franking credit.

Came upon a prime example of that - Metcash. Got in just before the dividend, it went up to more than the franking credits and I held on, waiting. Now it's gone right down (thanks to a major shareholder dumping shares by the millions just before the "correction".

Expensive lesson!

 

[rozella]

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

Sold 2 parcels of WDC today @ 1896.0

Sold WDC today @ 1896.0
Bought 3rd August @ 1886.0 with a margin of 80%
Investment 377.2/share
Exdiv 8th August,
Distribution 53.25/unit, franking TBA
Gross profit 63.25/unit = 16.77% return on investment. 5 days

Sold WDC today @ 1896.0
Bought 31st July @ 1905.0 with a margin of 80%
Investment 381.0/unit
Exdiv 8th August,
Distribution 53.25/unit, franking TBA
Gross profit 44.25/unit = 11.61% return on investment. 8 days

 

[rozella]

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

Sold WDC on the open today @ 1912.0 (golf day)
Bought 31st July @ 1905.0 with a margin of 80%
Investment 381.0/unit
Exdiv 8th August,
Distribution 53.25/unit, franking TBA
Gross profit 60.25/unit = 15.81% return on investment. 9 days

Bought GUD today @ 1090.0 with a margin of 65%
Investment 381.50
Exdiv 20th August
Dividend 34.0/share fully franked, 14.57/share

Bought TLSCA today @ 305.0 with a margin of 80%
Investment 61.0/share
Exdiv 20th August
Dividend 14.0/share fully franked, 6.0/share

 

[ozambersand]

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

Westfield held up nicely for a short dividend yield play. Wish they were all like that!!!!

(I got out too soon again!) Still a profit is a profit!

 

[rozella]

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

Westfield held up nicely for a short dividend yield play. Wish they were all like that!!!!

(I got out too soon again!) Still a profit is a profit!

Well thats right...closed on its high for the day @ 1965.0....but we were happy to sell when we did & move on.

 

[rozella]

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

Sold a parcel of AFI on the close today @ 587.0
Bought 30th July @ 587.0 with a margin of 70%
Investment 176.1/share
Exdiv date 1st August
Dividend 13.0/share fully franked 5.57/share
Gross profit 13.0/share = 7.38% return on investment. 10 days

 

[rozella]

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

Bought WAN today @ 1352.0 with a margin of 70%
Investment 405.60/share
Exdiv 10th September
Dividend 31.0/share fully franked 13.29/share

 

[CanOz]

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

Bought WAN today @ 1352.0 with a margin of 70%
Investment 405.60/share
Exdiv 10th September
Dividend 31.0/share fully franked 13.29/share

I reckon this would be an interesting time for you Rosella. Am i right in thinking it may provide some of the best dividend trading opportunities so far...when the dust settles a bit?

Cheers,

 

[rozella]

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

G'day CanOz,

I reckon this would be an interesting time for you Rosella. Am i right in thinking it may provide some of the best dividend trading opportunities so far...when the dust settles a bit?

Yes, I am treading cautiously atm as there is no need to rush in heavy yet. The volatility is similar to The September 11th 2001 era, where October 2001 ended to be my best month ever.

 

[rozella]

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

Sold WAN today @ 1394.0
Bought 10th August @ 1352.0 with a margin of 70%
Investment 405.60/share
Exdiv 10th September
Dividend 31.0/share fully franked 13.29/share
Gross profit 42.0/share = 10.35% return on investment.

Will re-enter on a down swing if opportunity arises

 

[rozella]

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

Bought CBA today @ 5320.0 with a margin of 75%
Investment 1330.0/share
Exdiv 20th August
Dividend 149.0/share fully franked 63.85/share

 

[rozella]

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

Sold CBA today @ 5325.0
Bought 15th August @ 5320.0 with a margin of 75%
Investment 1330.0/share
Exdiv 20th August
Dividend 149.0/share fully franked 63.85/share
Gross profit 154.0/share = 11.58% return on investment. 5 days

 

[rozella]

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

Bought QAN today @ 545.0 with a margin of 70%
Investment 163.50/share
Exdiv 27th August
Dividend 15.0/share fully franked 6.43/share

 

[rozella]

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

Sold QAN today @ 550.0
Bought 21st August @ 545.0 with a margin of 70%
Investment 163.50/share
Exdiv 27th August
Dividend 15.0/share fully franked 6.43/share
Gross profit 20.0/share = 12.23% return on investment. fc excl. 6 days