Dividend, Share Price: Is there a connection?

[phoenix_gr]

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

Bought AMP today @ 801.0 with a margin of 75%

Hi, could you explain what you mean by "with a margin of 75%" i'm new to trading so i don't know the terminology (i am final year Commerce with Fin major so your answer can be technical and i'll prob understand, or comeback tomorrow looking like i wasted 2 years ).

 

[rozella]

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

Hi, could you explain what you mean by "with a margin of 75%" i'm new to trading so i don't know the terminology (i am final year Commerce with Fin major so your answer can be technical and i'll prob understand, or comeback tomorrow looking like i wasted 2 years ).

Its a bad choice of words I suppose, however what I mean is that I bought using marginlending with a LVR of 75%

I used to say LVR then I was asked what that meant so I changed to using margin.

LVR - loan to value ratio

 

[michael_selway]

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.

Hi do you reckon that in a "bearish" like now, this strategy doesnt work so well?

thx

MS

 

[rozella]

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

G'day Michael,

The dividend strategy has served me well for 10 years which 1997 & 2001 were difficult, however these periods even though they were bearish, were not as volatile as it has been in the last 3 months.

While the market is this volatile I am happy to just to take pickings with the strategy & in all cases don't hold over exdiv date. This does not mean that I am not trading as I also trade the S&P/ASX20 with CFDs. I have never kept long term stocks.

I have only had 4 dividend trades in the last 3 months with 1 loss & 3 wins which included nil trades in January.

3 months or even 6 months is not much out of 10 years, as I am sure that we will find bottom over the next few months & will be back in 100%

The dividend strategy will work in a bear market when the high volatility is removed, but the volume of trades is high with a lower GP/trade. If there is a gradual downtrend it has always worked for me.

 

[rozella]

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

Bought ABC today @ 343.0 with a margin of 65%
Investment 120.05/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 today @ 342.0
Bought 3rd March @ 342.0 with a margin of 65% (previously said 343.0..mistake)
Investment 119.70/share
exdiv 6th March (today)
Dividend 9.0/share fully franked
Special dividend 3.5/share
Gross profit 12.5/share = 10.44% return on investment. 3 days

 

[rozella]

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

Bought WOW today@ 2880.0 with a margin of 80%
Investment 576.0/share
Exdiv 20th March
Dividend 44.0/share fully franked 18.86/share.

 

[rozella]

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

Bought WOW today@ 2880.0 with a margin of 80%
Investment 576.0/share
Exdiv 20th March
Dividend 44.0/share fully franked 18.86/share.

 

[rozella]

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

Sold WOW 12th March @ 2890.2
Bought 7th March @ 2880.0 with a margin of 80%
Investment 576.0/share
Exdiv 20th March
Dividend 44.0/share fully franked 18.86/share.
Gross profit 10.2/share = 1.77% return on investment. 5 days

Bought WOW today @ 2650.0 with a margin of 80%
Investment 530.0/share
Exdiv 20th March
Dividend 44.0/share fully franked 18.86/share.
Sold today @ 2677.0/share
Gross profit 27.0/share = 5.09% return on investment. 0.5 days

Bought WOW today @ 2639.8 with a margin of 80%
Investment 527.96/share
Exdiv 20th March
Dividend 44.0/share fully franked 18.86/share.
Sold today @ 2685.0/share
Gross profit 45.2/share = 8.56% return on investment. 0.5 days

Bought ABC today @ 319.0 with a margin of 65%
Investment 111.65/share
Post dividend

 

[rozella]

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

Sold ABC today @ 333.0
Bought 17th March @ 319.0 with a margin of 65%
Investment 111.65/share
Post dividend
Gross profit 14.0/share = 12.54% return on investment. 1 day

 

[rozella]

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

Bought ABC today @ av 318.2 with a margin of 65%
Investment 111.37/share
Post dividend

 

[Fool]

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

Bought ABC today @ av 318.2 with a margin of 65%
Investment 111.37/share
Post dividend

looking good rozella, has the current market conditions changed how you trade pre crash/bear?

 

[rozella]

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

G'day Fool,

......has the current market conditions changed how you trade pre crash/bear?

Yes certainly.....I sold out of all stocks by 9th January & since then have only been trading 1 or 2 dividend stocks at any one time for the short term, selling prior to exdiv date.

ABC has been exceptionally good as most days it ranges about 15 cents which was more than the dividend....can't always pick top & bottom though. I have been cautious with the size of parcels & don't always sit in the que.

Could be a long haul before market will eventually plateau, so in the meantime I will just concentrate on a few that fit my strategy.

 

[rozella]

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

Sold ABC today @ 333.0
Bought 18th March @ av 318.2 with a margin of 65%
Investment 111.37/share
Post dividend
Gross profit 14.8/share = 13.29% return on investment. 1 day

 

[JTLP]

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

Rozella,

Have you ever made a loss out of your trading scheme?

And whats your tax bill like lol

 

[rozella]

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

Rozella,

Have you ever made a loss out of your trading scheme?

And whats your tax bill like lol

I have made quite a few sizeable losses over the last 10 years due to my own stupid mistakes but overall in any 12 month period since I have been dividend trading I have had reasonable returns. This FY year is not so good but still should be positive.

Tax is a fact of life if you earn profits, but with planning & utilising some franking credits, one can limit this, however, they may have to pay me this year.

 

[rozella]

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

Re-entered ABC today @ 319.0 with a margin of 65%
Investment 111.65/share
Post dividend

 

[rozella]

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

Sold ABC today @ 329.0
Bought 20th March @ 319.0 with a margin of 65%
Investment 111.65/share
Post dividend
Gross profit 10.0/share = 8.96% return on investment. 5 days

 

[rozella]

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

Bought DJS today @ 355.0 with a margin of 70%
Investment 106.50/share
Exdiv 4th April
Dividend declared 11.0/share fully franked 4.71/share

 

[rozella]

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

Sold DJS today @ 367.0
Bought 27th March @ 355.0 with a margin of 70%
Investment 106.50/share
Exdiv 4th April
Dividend declared 11.0/share fully franked 4.71/share
Gross profit 12.0/share = 11.27% return on investment. 1 day