Australian (ASX) Stock Market Forum

Dividend, Share Price: Is there a connection?

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

Been travelling around today, however, placed a buy order for BBG before market open @ 1315.0 & was filled during the morning.....no time to post.

Re-entered BBG today @ 1315.0 with a margin of 70%
Investment 394.5/share
Exdiv 22nd September
Dividend declared 28.5/share fully franked 12.21/share
Sold on the close today @ 1331.0
Gross profit 16.0/share = 4.04% return on investment.

Missed selling CAB today @ 700.0 to 705.0...forgot to place order.
 
Re: Dividend, Share Price. Is there a connection?

Sold CAB on the open today @ 710.0
Bought 15th September @ 686.0 with a margin of 65%
Investment 240.1/share
Exdiv 23rd September
Dividend declared 17.0/share fully franked 7.29/share
Gross profit 24.0/share = 10.00% return on investment. 2 days

BBG surged ahead on the open, but better to be safe than sorry in this market.
 
Re: Dividend, Share Price. Is there a connection?

Re-entered BBG today @ 1314.0 with a margin of 70%
Investment 394.2/share
Exdiv 22nd September
Dividend declared 28.5/share fully franked 12.21/share
 
Re: Dividend, Share Price. Is there a connection?

rozella said:
Sold CAB on the open today @ 710.0
Bought 15th September @ 686.0 with a margin of 65%
Investment 240.1/share
Exdiv 23rd September
Dividend declared 17.0/share fully franked 7.29/share
Gross profit 24.0/share = 10.00% return on investment. 2 days

BBG surged ahead on the open, but better to be safe than sorry in this market.
Click to expand...

Hm so in a bear market this "Dividend Strategy" doesnt work well would you advise?

thx

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

Hm so in a bear market this "Dividend Strategy" doesnt work well would you advise? thx

MS
Click to expand...
I'm quite happy with the strategy Michael, especially this August & September.

Is there a problem with my post that you quoted, that prompted you to comment, other than not picking the tops & bottoms ?
 
Re: Dividend, Share Price. Is there a connection?

Hi rozella

are you in BSL ?? current $7.770

Dividend Type Cents Per Share Franked % Ex-Dividend Date Pay Date
Final 27.00 100 22 Sep, 08 22 Oct, 08
 
Re: Dividend, Share Price. Is there a connection?

Sold out of BBG today @ & will try & buy cheaper.

Sold BBG today @ 1325.0
Bought 17th September @ 1314.0 with a margin of 70%
Investment 394.2/share
Exdiv 22nd September
Dividend declared 28.5/share fully franked 12.21/share
Gross profit 11.0/share = 2.79% return on investment.
 
Re: Dividend, Share Price. Is there a connection?

Re-entered BBG on the close today @ 1293.0 with a margin of 70%
Investment 387.9/share
Exdiv 22nd September
Dividend declared 28.5/share fully franked 12.21/share
 
Re: Dividend, Share Price. Is there a connection?

Sold BBG today @ 1350.0
Bought 18th September on the close @ 1293.0 with a margin of 70%
Investment 387.9/share
Exdiv 22nd September
Dividend declared 28.5/share fully franked 12.21/share
Gross profit 57.0/share = 14.69% return on investment. 1 day
 
Re: Dividend, Share Price. Is there a connection?

Rozella,

I've been following this thread for a while and have been wondering if you had ever bothered to work out what % of your gains were due to just chart reading, ie the buying/selling component compared to the dividend strategy component.

From what I have observed is that the buying/selling criteria you have (like bbg yesterday/today) would have worked on many stocks that have not declared a dividend, plus there are many stocks that do declare dividends that you don't apply this strategy to.

The ones you leave out I can only assume it is because of a 'poor' chart pattern (or some other reason). If you are therefore selective in the stocks you adapt this strategy to, then how do you separate out the 'chart reading' from the 'dividend strategy', and the respective performance of each.

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

G'day brty,

I don't usually buy/sell any stocks without at least eyeballing a chart & use a tick movement chart in the leadup to the trade.

I select my stocks from the exdividendwatchlist that with marginlending have a yield of 10% plus for the current dividend payment. Also in this volatile market I pay more attention to those stocks that report an increased profit, increased dividend & a good outlook for the future. As well as that criteria, I also like to trade those stocks that range the dividend amount most days.

CAB & CWN are also reasonable for me.....while I fiddled around this morning, I missed the jump on CWN & has escaped for the moment....I had planned on entering around 800.0....now 835.0

You are quite right that most stocks have had a nice rise today which are not necessarily cum-dividend, but I have had nice wins for the last 6 trading days when the market was only up 2 days including today. I am a creature of habit & stay with the strategy that has served me best....not everyones 'cup of tea'

Basically I work on the principle The lure of the dividend, gives a stock a reason to rise

Look at BBG now, it has risen to 1371.0 (another 21.0 after I sold) ......it goes exdiv on Monday. It was slow this morning so I sold & thought I might be able to re-enter if it dropped a bit.....no worries we will move on.
 
Re: Dividend, Share Price. Is there a connection?

Hi Rozella,

You may not have got the meaning of my question.

I was asking about if you have statistically studied the performance of this part...

I don't usually buy/sell any stocks without at least eyeballing a chart & use a tick movement chart in the leadup to the trade.
Click to expand...
....

but on stocks that are not in the dividend period. That is, how does the performance compare between the 2??

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

G'day brty,

As I mentioned, I am a creature of habit & only trade cum-dividend stocks & stay away from the rest. After about a week after they go exdiv, I don't consider them anymore until the next round of dividends

So no....at least not for the last 10 years anyway.

Good exercise for you ;)
 
Re: Dividend, Share Price. Is there a connection?

Bought CWN on the open today @ 815.0 with a margin of 75%
Investment 203.75/share
exdiv 3rd October
Dividend declared 29.0/share 40% franked 4.97/share
 
Re: Dividend, Share Price. Is there a connection?

Sold CWN today @ 838.0....am on the road atm.....batteries on laptop depleted so found a campspot for tonight near the Murrumbidgee River & now have the genset running.
Bought on the open today @ 815.0 with a margin of 75%
Investment 203.75/share
exdiv 3rd October
Dividend declared 29.0/share 40% franked 4.97/share
Gross profit 23.0/share = 11.29% return on investment. 1 day

Bought SIP today @ 131.0 with a margin of 70%
Investment 39.3/share
exdiv 30th September
Dividend declared 3.0/share fully franked 1.277/share
 
Re: Dividend, Share Price. Is there a connection?

Bought DJS today @440.0 with a margin of 70%
Investment 132.0/share
Exdiv 3rd October
Dividend 16.0/share fully franked 6.86/share
 
Re: Dividend, Share Price. Is there a connection?

Rozella
Why is DJS trading volume light today? Would have thought it would be heavier given exdiv tomorrow + about 10% drop in last few days (seems like a vanilla pullback to me) + it's weathered the recent turbulence well.
What are your thoughts?
Bin
 
Re: Dividend, Share Price. Is there a connection?

G'day Bin,

Don't Know.....there has not been any announcements re DJS.

I set my orders today & was away from the screen for most of the day. DJS was disappointing but I managed the following trades.

Sold SIP today @ 133.0
Bought 23rd September @ 131.0 with a margin of 70%
Investment 39.3/share
exdiv 30th September
Dividend declared 3.0/share fully franked 1.277/share
Gross profit 5.0/share = 12.72% return on investment. 9 days.

Bought CWN today @ 831.0 with a margin of 75%
Investment 207.75/share
exdiv 3rd October
Dividend declared 29.0/share 40% franked 4.97/share
 

Similar threads

TiminOz
The dynamics of money and TIME: crimping cashflow for a period
Replies
3
Views
624
TiminOz
TiminOz
divs4ever
ZYAU - S&P/ASX 300 High Yield Plus ETF
Replies
0
Views
1K
divs4ever
divs4ever
S
Who is trading using an EA "RP4000EA" developed by Royal Prince Trading?
Replies
4
Views
1K
peter2
peter2
S
What could be safer than writing a covered call?
Replies
15
Views
2K
Santafe
S
StudentTrader
What are the two main types of market analysis and how can we combine them?
2
Replies
31
Views
4K
tech/a
tech/a
Top