Dividend, Share Price: Is there a connection?

[roland]

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

Normally companies increase their dividends based on previous dividends payments and not on share price.

So they normally say "An increase of 10%", that is from prev paid divds.

Now, if share price raises too much in relation to the divds itself the yield will fall and the if the share price falls the yield will rise.

WBII

I think what I was trying to clarify in my head was the value of holding a high yielding stock, where it may pay 5% now based on it's current SP.

If it still payed 5% when the SP rises, then, although it is still yielding 5% on current SP, you would in effect be yielding a higher percentage based on the original investment.

 

[rozella]

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

Sold WES today @ 4295.0
Bought WES 16th October @ 4290.0 with a margin of 75%
Investment 1072.50/share
Exdiv 8th November
Dividend 140.0/share fully franked 60.0/share
Gross profit 145.0/share = 13.52% return on investment, excl fc. 42 days

 

[Fool]

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

nice work rozella, I am still watching. I made a nice sum on WES too, but was worried there for abit when it dropped off.

 

[rozella]

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

nice work rozella, I am still watching. I made a nice sum on WES too, but was worried there for abit when it dropped off.

I didn't take the chance holding out for the franking credit....who knows what will happen in this market....if only we knew next weeks prices...

Sold my WES cfd holdings as well which were bought for 3809.0

 

[rozella]

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

Bought LNN on the close @ 916.0 with a margin of 75%
Investment 229.0/share
Exdiv 10th December
Dividend 21.0/share fully franked 9.0/share

 

[rozella]

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

Sold LNN today @ 937.0
Bought 27th November @ 916.0 with a margin of 75%
Investment 229.0/share
Exdiv 10th December
Dividend 21.0/share fully franked 9.0/share
Gross profit 21.0/share = 9.17% return on investment. 6 days

 

[rozella]

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

Sold DRT today @ 204.0
Bought 8th November @ 198.0 with a margin of 75%
Investment 49.5/unit
Exdist expected 21st December
Last years distribution was 5.6/unit
Gross profit 6.0/unit = 12.12% return on investment. 26 days

 

[rozella]

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

G'day all.....I am still around.....its just that I have nothing much to post on the dividend trading strategy until the market settles.

I am just watching my prospects prior to the reporting season which is coming up at the end of the month & have been having a few CFD trades (small change trades) ....S&P/ASX20 stocks

I sold the last of my dividend trades today which was FCL for a small profit when interest is calculated....it has actually had some strength of late, however, I want to start this next session 100% in cash with no 'dead wood'

The way the market is travelling I think we will see the XAO at 5600 points shortly.....maybe a couple of days away at the speed it is travelling.......hopefully we will hit a low point as the reports start flowing.

At this point my plan is to wait for each report to see the reaction before a buy, then up run as far as possible selling prior to exdiv date.

 

[Fool]

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

hey rozella,
i am still here too will be interesting to see what happens tonight.

 

[rozella]

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

It feels strange being stockless after a decade of being 100%+ in the market, but it sure is better than losing 1 to 3 months salary every day.

DJW reported today & finished up 9 cents on a horrific day, although it has been on the slide since early January. From my observations over the years, more than 50% of stocks that report are lower the day after announcement.....we will see how DJW fares tomorrow.

WAN, SGM, GPT, IAG & WOW were the only other positive rises today on my prospect watchlist.

My thoughts were that the XAO would hit 5600 as the reporting season commences at the end of the month, but I am thinking that this should be revised after todays performance.

I will have to become used to expecting the unexpected.

 

[rozella]

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

Bought GUD on the close yesterday @ 997.0 with a margin of 65%
Investment 348.95/share
Exdiv date 18th February
Dividend declared 30.0/share fully franked 12.86/share

 

[rozella]

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

Sold GUD taday @ 1046.85 av
Bought 6th February @ 997.0 with a margin of 65%
Investment 348.95/share
Exdiv date 18th February
Dividend declared 30.0/share fully franked 12.86/share
Gross profit 49.85/share = 14.28% return on investment. 8 days

 

[dutchie]

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

Anyone like to comment on whether, generally speaking a share goes up on the day before ex-dividend.

What about the end of day auction does it usually still go up or no pattern??

Cheers

Dutchie

 

[Birdster]

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

Does any know who gets the dividends if I sell on the ex-dividend day? ie; have bought on friday a number of shares that go xd on Monday and I sell on that day.

I searched the forum for an answer, and this thread was the closest I could find related.

sorry if has been asked before.

 

[robots]

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

hello,

if you sell on ex-div day you get div,

if you sell b4 ex-div day you dont get div

thankyou

robots

 

[Bill M]

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

Anyone like to comment on whether, generally speaking a share goes up on the day before ex-dividend.

What about the end of day auction does it usually still go up or no pattern??

Cheers

Dutchie

What I find mostly that happens is that a few days prior to ex div the share will increase in price. However on the last day before ex div the sellers can come in droves and drive the price down, all thinking they will get out before the big drop the next day. The day before ex div with TAH just this week is a good example.

In other cases like today with WES the price jumped 4.8%. Then in other cases a stock may have had a bad report or it's on the nose like CBA was just recently and nothing will save the stock even if it was just before ex div. It's just not an exact science unfortunately.

 

[rozella]

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

Bought ABC 20th February @ 339.0 with a margin of 65%
Investment 118.65/share
exdiv 6th March
Dividend 9.0/share fully franked
Special dividend 3.5/share
Sold 25th February @ 354.4av
Gross profit 15.4/share = 12.98% return on investment. 5 days

Bought ABC 26th February @ 345.0 with a margin of 65%
Investment 120.75/share
exdiv 6th March
Dividend 9.0/share fully franked
Special dividend 3.5/share
Sold 26th February @ 355.6av
Gross profit 10.6/share = 8.78% return on investment. 0.5 days

Bought ABC 27th February @ 349.7av with a margin of 65%
Investment 122.4/share
exdiv 6th March
Dividend 9.0/share fully franked
Special dividend 3.5/share

 

[rozella]

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

Sold ABC on the close today @ 359.0
Bought ABC 27th February (today) @ 349.7av with a margin of 65%
Investment 122.4/share
exdiv 6th March
Dividend 9.0/share fully franked
Special dividend 3.5/share fully franked
Gross profit 9.25/share = 7.55% return on investment. 0.5 days

 

[rozella]

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

Bought AMP today @ 801.0 with a margin of 75%
Investment 200.25/share
Exdiv 3rd March
Dividend declared 24.0/share 85% franked 8.74/share

 

[rozella]

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

Sold AMP on the close yesterday (29th Feb)@ 805.0
Bought 28th February @ 801.0 with a margin of 75%
Investment 200.25/share
Exdiv 3rd March
Dividend declared 24.0/share 85% franked 8.74/share
Gross profit 4.0/share = 2.0% return on investment. 1 day

Holding nil stocks again now.