Dividend, Share Price: Is there a connection?

[rozella]

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

Finally sold BOQ today @ 1702.0
Bought 4th April @ 1690.0 with a margin of 70%
Investment 507.0/share
Exdiv 28th April
Dividend declared 35.0/share fully franked 15.0/share
Gross profit 47.0/share = 9.27% return on investment. 39 days

 

[j4mesa]

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

Hi Don,

How are you going ?
in CFD , I am thinking of shorting WBC and long on SGB before their ex-div date..

reason being is WBC is fully franked dividend while it is getting dilution as merger with SGB.
While SGB is retaining it value from SGB even though it eill be giving out dividends.....

I see the pair of them would be great.....what do you think ?

Regards,

James Agus

 

[rozella]

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

G'day James,

How are you going ?

Never felt better....we are 'trading & travelling' for the next 2 months....we are at Wellington NSW beside the river atm.

in CFD , I am thinking of shorting WBC and long on SGB before their ex-div date..

reason being is WBC is fully franked dividend while it is getting dilution as merger with SGB.
While SGB is retaining it value from SGB even though it eill be giving out dividends.....

I see the pair of them would be great.....what do you think ?

I am not an expert in pairs trading, but you will have the WBC dividend of 70 cents deducted from your account if you short & the SGB dividend of 88 cents added, giving a net gain 18 cents dividend. It is not my way of trading so maybe others would have a more constructive opinion. I was just waiting for the budget last night for market reaction before I make my choice.

Well done for those that were holding SGB last Friday.

 

[rozella]

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

Bought WBC today @ 2476.0 with a margin of 75%
Investment 619.0/share
Exdiv 19th May
Dividend declared 70.0/share fully franked 30.0/share

 

[rozella]

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

Bought NAB today on the open @ 3365.0 with a margin of 75%
Investment 841.25/share
Exdiv 30th May
Dividend declared 97.0/share fully franked 41.57/share

Bought CFX today on the open @ 217.0 with a margin of 75%
Investment 54.25/unit
Exdist expected 24th June
Last years distribution was 5.9/unit zero franked

Sold DJS today @ 361.0/share
Bought 12th May @ 349.0 with a margin of 70%
Investment 104.7/share
Post dividend on the 4th April
Dividend was 11.0/share fully franked.
Gross profit 12.0/share = 11.46% return on investment. 3 days

 

[andy87]

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

Rozella, this might be a really newb question (havent even heard of dividend caputuring until today) and you dont hve to answer,but what is your annual return minus capital gains?

 

[rozella]

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

G'day andy87,

Returns on working capital over the last 10 years vary quite a bit but usually between 30% to 50% which includes dividends less brokerage & interest, however, this year has been quite different which places me about square atm, so I have until the 30th June to profit providing the market does not blow up again. Business running expenses are additional but considerable.

I was out of the market for about a month as at 9th January l & have been only dabbling with a few stocks after that as you can see on my posts.

With being a trader I don't have capital gain/loss accounts.

 

[rozella]

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

Had a hiccup executing a buy order today which I did not realise that I had purchased twice until after close when I looked at the contracts.....hasn't happened for a long time.

Bought CPA today @ 137.0 with a margin of 70%
Investment 41.1/unit
Exdist expected 24th June
Last years distribution was 4.87/unit zero franked

Bought CPA today @ 137.0 with a margin of 70%
Investment 41.1/unit
Exdist expected 24th June
Last years distribution was 4.87/unit zero franked

rozella

 

[j4mesa]

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

G'day James,
Never felt better....we are 'trading & travelling' for the next 2 months....we are at Wellington NSW beside the river atm.

Wow.....how enjoyable !!!
trading while travelling.....I wish I could do that one day

anyway thank you for your opinion.....
I will see how it goes....

 

[andy87]

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

G'day andy87,

Returns on working capital over the last 10 years vary quite a bit but usually between 30% to 50% which includes dividends less brokerage & interest, however, this year has been quite different which places me about square atm, so I have until the 30th June to profit providing the market does not blow up again. Business running expenses are additional but considerable.

I was out of the market for about a month as at 9th January l & have been only dabbling with a few stocks after that as you can see on my posts.

With being a trader I don't have capital gain/loss accounts.

Thanks rozella, your respones gives me a good indication as to what sort of gains are achievable through dividend capturing. Ill probs investigate further to gain as much knowledge as i can about the subject

 

[rozella]

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

Bought DXS today @ 160.5 with a margin of 75%
Investment 40.125/unit
exdiv expected 24th June
Last years distribution was 5.7/unit zero franked

Bought SGP today @ 635.0 with a margin of 80%
Investment 127.0/unit
exdiv expected 24th June
Last years distribution was 22.8/unit 20.65% franked 2.02/unit

 

[white_goodman]

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

this thread is really informative thanks rozella, i might give this dividend trading thing a go to learn the ropes

 

[white_goodman]

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

what sort of stop loss is a rule of thumb with say a 50% margin? when the share price goes down 5%? when the share price goes down 3 consecutive trading days? yes im a beginner dont be too harsh.....

 

[roland]

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

Bought WBC today @ 2476.0 with a margin of 75%
Investment 619.0/share
Exdiv 19th May
Dividend declared 70.0/share fully franked 30.0/share

hey Rozella, notice that WBC hasn't played the game this time 'round. I picked up a little cheaper than you did, but it's a long time recovering - you haven't posted in a while ... hope you are doing OK

 

[rozella]

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

G'day roland & white_goodman,

Still holding WBC. I have not been trading much over the last 6 months & only partially in the market, so have been cruising around inland NSW in the 5th wheeler for the past 2 months....parked overlooking a lake at Griffith atm for the night.

The market was very ordinary today considering the DOW was up 165 points....at least most of the LPTs were up nicely today.

 

[roland]

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

G'day roland & white_goodman,

Still holding WBC. I have not been trading much over the last 6 months & only partially in the market, so have been cruising around inland NSW in the 5th wheeler for the past 2 months....parked overlooking a lake at Griffith atm for the night.

The market was very ordinary today considering the DOW was up 165 points....at least most of the LPTs were up nicely today.

Glad to hear you are taking it easy Rozella

A bit hard chasing dividends at the moment in this falling market, the SP isn't recovering post ex-div as well as it used to.

You have us all jealous Rozella - sittin' there beside the lake - keep safe!

 

[rozella]

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

Bought WDC today @ 1655.0 with a margin of 80%
Investment 331.0/unit
Exdist date 11th August
Distribution 53.25/unit zero franked

 

[roland]

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

hey rozella, Westpac nearly back from where you bought it. You going to hold for next div or trash it?

 

[rozella]

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

G'day Roland,

I sold WBC along with all my other holdings prior to end of FY (all losses).....only held about 4 stocks at that time.

WDC today is my only purchase since then (dividend related)

 

[rozella]

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

Sold WDC today on the open @ 1690.0
Bought 8th August @ 1655.0 with a margin of 80%
Investment 331.0/unit
Exdist date 11th August
Distribution 53.25/unit zero franked
Gross profit 88.25/unit = 26.66% return on investment. 3 days