SKC Dividend pairs trading strategy

[notting]

I haven't quite got what the stratergy is here.
But Long BEN
Short BOQ looks OK to me?

 

[Gringotts Bank]

Anyone know if IG Markets has the full range of American ETFs to trade? And the data fees for US stock access?

 

[skc]

I haven't quite got what the stratergy is here.
But Long BEN
Short BOQ looks OK to me?

Sorry missed this question last month. The point is to capture the market inefficiency associated with dividend drop-off, and using franking credit as a cushion.

BEN is going ex-div at end of Feb and so it would be a candidate. But this strategy doesn't put on the trade until very close to the ex-date.

Anyone know if IG Markets has the full range of American ETFs to trade? And the data fees for US stock access?

Wrong thread or are you asking me? IG doesn't pay me for doing FAQ for them... so get off your backside call them yourself

 

[PinguPingu]

Bumping this as its dividend season again and looking to try this, and so far my first paper pair not going smashingly...

Long Tabcorp: TAH @3.300 its now already $3.23
Index short hedge @ 4975 is going ok

When did you (skc, sammy, etc) find was generally the best time to open the positions? Guess I wasn't expecting such a sell off before TABs dividend.

 

[skc]

Bumping this as its dividend season again and looking to try this, and so far my first paper pair not going smashingly...

Long Tabcorp: TAH @3.300 its now already $3.23
Index short hedge @ 4975 is going ok

When did you (skc, sammy, etc) find was generally the best time to open the positions? Guess I wasn't expecting such a sell off before TABs dividend.

That's a trillion dollar question, isn't it? You open the trade as close to the ex-date as possible (which you did I am guessing) to minimise the risk, and unless you are good with day trading / order flow etc, you are going to get your timing wrong sometimes. The benefit is that the franking credit "cushions" it (hopefully) and the strategy is profitable over many trades.

BTW I don't do this strategy any more. It's time consuming with limited upside (only up to $5k in franking credits max). And I have a share portfolio these days that earns dividend so the upside is even less.

 

[PinguPingu]

BTW I don't do this strategy any more. It's time consuming with limited upside (only up to $5k in franking credits max). And I have a share portfolio these days that earns dividend so the upside is even less.

Why did I have a suspicion this would be part of your answer Yeah I can definitely see how this would be tediously time consuming, given constant entry/exit watching. Still, given all the time I have during uni holidays and the fact i have just enough to strip some now and again (capital 20k) I'll see how it plays out.