Dividend, Share Price: Is there a connection?

[rozella]

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

Sold OST today @ 286.0 Bought on 19th January @ 279.8 with a margin of 65%
Investment 97.93/share. Last years div was 5.0/share, should report approx 5th Feb.
Gross profit 6.2/share = 6.33% return on investment. 13 day trade

rozella

 

[rozella]

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

Sold PTD today on the close @ 190.0 (thought I might get 191.0). Bought on 28th January @ 184.0 with a margin of 50%. Investment 92.0/share.
Goes exdiv 8th Feb, div 8.0/share fully franked.
Gross profit 6.0/share = 6.52% return on investment. 4 day trade.

rozella

 

[Warren Buffet II]

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

Sold PTD today on the close @ 190.0 (thought I might get 191.0). Bought on 28th January @ 184.0 with a margin of 50%. Investment 92.0/share.
Goes exdiv 8th Feb, div 8.0/share fully franked.
Gross profit 6.0/share = 6.52% return on investment. 4 day trade.

rozella

Rozella,

Are you changing some of your strategic here? I have seen too many exits these days without picking up the divds? Any thoughts?

Regards,

 

[rozella]

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

Warren Buffet II

Are you changing some of your strategic here? I have seen too many exits these days without picking up the divds? Any thoughts?

This is section 1 of my strategy if you are referring to OST & section 2 if you are referring to PTD. I find it is easier to earn some trading profits first as they appear....at least I have that, then on a pullback I can re-enter maybe for some more or stay in for the dividend. There is only so much trading capital, so I try to take the quickest route to the most dollars in the shortest amount of time.

There are a lot of stocks ready to report atm, so there is no shortage of opportunities.

rozella

 

[rozella]

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

Bought GUD today @ 777.0 with a margin of 65% Investment 271.95/share.
Exdiv 21st Feb, div declared 23.0 fully franked 9.857/share.

Bought another parcel of AWC today @ 610.0 with a margin of 70%
Investment 183.0/share. Exdiv 7th Feb, div declared 10.0/share 75% franked.
Looking to take what profit if any that I can, & exit before exdiv day. stoploss 592.0.

Sold DJW today @ 379.08. Bought 19th January @ 368.16 with a margin of 70%
Investment 110.448/share. Should be reporting soon. Last years div was 10.0/share fully franked. It is difficult trading low volume stocks, there was only approx 42,000 traded & I wanted to sell 6000, & I eventually sold 238 @ 381.0 at 11:54am & waited until 13:50pm to sell the balance of 5762 @ 379.0 when there was enough on the buy side......but looks like a build up of buyers since.
Gross profit 10.92/share = 9.89% return on investment. 22 day trade. 2nd trade

rozella

 

[rozella]

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

Re-entered OST today @ 282.0 with a margin of 65%. Investment 98.7/share.
Last years dividend was 5.0/share fully franked 2.14/share & is expected to report very shortly.

rozella

 

[Warren Buffet II]

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

Bought another parcel of AWC today @ 610.0 with a margin of 70%
Investment 183.0/share. Exdiv 7th Feb, div declared 10.0/share 75% franked.
Looking to take what profit if any that I can, & exit before exdiv day. stoploss 592.0.

rozella

Hi Rozella,

I have been following AWC for a while and I found a bit disappointing that they have decreased their dividends from the 10.0/share 100% franked to 10.0/share 75% franked being a company in the commodity industry which is supposed to be booming (Maybe aluminiun is not booming that much). I have seen from that day the price to decrease from 6.25 ..something to around 5.98 today. So my question here is do you take into consideration this kind of information when buying any stock or you just stick to the formula of divds?
I know the answer is yes but I would like to know how?


Regards,

 

[rozella]

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

G'day Warren Buffet II,

I sometimes read those statistics, just to have an overall view, but price of the stock is my main indicator.

Tomorrow is the last day before exdiv, so if there is no action then, well a decision has to be made.

Here is an article in the SMH this morning....if it asks you to register, its free.

Higher costs fail to dent Alumina profit

rozella

 

[DTM]

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

Hi Rozella,

Thought this thread might of interest to you.

https://www.aussiestockforums.com/forums/showpost.php?p=6934&postcount=25

Cheers

Daniel

 

[Bodhi2500]

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

Hi Rozella,
Thanks for replying to my previous questions, there is another aspect of your posts that I’m not quite understanding.
You say one of your criteria for selecting a stock is > “The highlighted stocks must meet my criteria which is simply stocks in uptrend that show a yield of better than 10% for the dividend declared/expected plus the franking credit over the investment outlayed.”
Is the ‘10%’ based off the dividend yield, Div/Shr or something else?
Thanks.

 

[rozella]

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

Hi Rozella,
Thanks for replying to my previous questions, there is another aspect of your posts that I’m not quite understanding.
You say one of your criteria for selecting a stock is > “The highlighted stocks must meet my criteria which is simply stocks in uptrend that show a yield of better than 10% for the dividend declared/expected plus the franking credit over the investment outlayed.”
Is the ‘10%’ based off the dividend yield, Div/Shr or something else?
Thanks.

Its a formula to compare all the stocks to see which would return the most, so that it can be put on your watchlist.......other criteria may dismiss it.

Take TLS for example (we assume the div will be the same as last year)

Last price (3rd Feb) 507.0
expected div 13.0
franking credit 5.57
LVR (margin lending) 75%

Borrowed amount 507.0 x 0.75 = 380.25
Our investment 507.0 x 0.25 = 126.75

(div + fc) / investment
(13.0 + 5.57) / 126.75 = 0.1465 or 14.65%

So 14.65% is over 10%, so it is worthy of going onto our watchlist......from then on it is subject to your usual trading criteria.

It is nothing more than a comparison, whether you use the franking credit in the formula or not, it is up to you......provided that you do it the same for all.

rozella

 

[rozella]

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

Hi Rozella,

Thought this thread might of interest to you.

https://www.aussiestockforums.com/forums/showpost.php?p=6934&postcount=25

Cheers

Daniel

The good thing about the market is that it has a niche for everybody.....I have been making good $$$'s from my current strategy for a few years now & are loathe to change. I guess you do best what you know best. I have tried & backtested various add-ons to enhance the returns & risk, but I am more comfortable keeping it simple as I am doing.

If money tree, wayneL & yourself are making a motza this way, then thats great.....keep it up.

I would like to see some of these trades posted as you buy & sell, so that others can benifit from your knowledge.

rozella

 

[rozella]

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

Bought WAN today @ 872.0 with a margin of 70% Investment 261.6/share.
Exdiv 11th March. Div 20.0/share fully franked 8.57/share.

rozella

 

[rozella]

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

Sold 1 parcel of AWC on the close today @ 595.0 Bought 2nd February @ 610.0 with a margin of 70% Investment 183.0/share Exdiv Monday 7th Feb.
Gross loss 15.0/share = 8.19% loss on investment

Sold GUD on the close today @ 758.0 Bought 2nd February @ 777.0 with a margin of 65%
Investment 271.95/share. Exdiv Monday 21st Feb.
Gross loss 19.0/share = 6.98% loss on investment

Bought ADB today @ 1099.0 with a margin of 70% Investment 329.7/share.
Exdiv 7th March

rozella

 

[rozella]

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

Sold some dead wood today.....ARP. 1st trade was profitable but this one was bought 5th November 04 @ 431.0 with a margin of 50%. Investment 215.5/share.
Dividend paid 20.0/share fully franked 8.57/share. exdiv was 15th November.
Sold today @ 375.0 to fund another purchase.
Gross loss 27.43/share = 12.73% loss on investment. 96 day trade (far too long)

Bought CBA on the close today @ 3443.0 with a margin of 75%.
Investment 860.75/share. Profit announcement expected 9th Feb (tomorrow)
exdiv day expected 14th February. Last years div was 79.0/share fully franked.

Bought another parcel of BLD today @ 679.0 with a margin of 70%.
Investment 203.7/share. exdiv on 23rd Feb, div 17.0/share fully franked, although will sell this parcel prior to exdiv date.

rozella

 

[Warren Buffet II]

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

Bought CBA on the close today @ 3443.0 with a margin of 75%.
Investment 860.75/share. Profit announcement expected 9th Feb (tomorrow)
exdiv day expected 14th February. Last years div was 79.0/share fully franked.

rozella

I have checked some comments about this CBA divd and they are expecting a 85.0/share fully franked, I expect a 87.0/share fully franked. Let's wait until tomorrow to se what happens.

 

[rozella]

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

I have checked some comments about this CBA divd and they are expecting a 85.0/share fully franked, I expect a 87.0/share fully franked. Let's wait until tomorrow to se what happens.

Lets hope your info is right WBII, I always use last years just as a guide until something concrete has been announced by the company......I'm sure it will increase, but by how much ?......as you said we will know tomorrow, & they usually report before open.

rozella

 

[Warren Buffet II]

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

I have checked some comments about this CBA divd and they are expecting a 85.0/share fully franked, I expect a 87.0/share fully franked. Let's wait until tomorrow to se what happens.

CBA 85.0/share fully franked. That is nice as I have kept my investmetn in CBA since the beginning of the year, I bought it for 32.22.

 

[rozella]

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

CBA 85.0/share fully franked. That is nice as I have kept my investmetn in CBA since the beginning of the year, I bought it for 32.22.

Easy money WBII, ......if only CBA would behave like that every dividend period !!......up 133.0 today.....I must say I was tempted to sell.

rozella

 

[Warren Buffet II]

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

Easy money WBII, ......if only CBA would behave like that every dividend period !!......up 133.0 today.....I must say I was tempted to sell.

rozella

Rozella,

It looks like dejavu today.

Regards,