Dividends... Ex dividend dates... Selling after.

[farmaholic]

Below are a couple of screen shots of a stock that has been declaring a quarterly dividend equal to about a 6% annual return, which of course varies depending on stock value. Notice the chart movement around those quarterly payments. I never went back very far but it seems to show how people/funds likely buy in shortly before the dividend, get the dividend and then bail. Hmmmmm.......

1 month chart:



3 month chart:

[agstar77]

Stock price usually drops ex dividend , nothing new.

[farmaholic]

Does anyone trade knowing this? No guarantees. I would have to look things over better but if you were to by a stock and hold it short-term just to get a quarterly dividend... buying in after the stock fell after the dividend has been paid might yeild better results than grabbing the quarterly dividend....

"No Guarantees"

[jazz]

Does anyone trade knowing this? No guarantees. I would have to look things over better but if you were to by a stock and hold it short-term just to get a quarterly dividend... buying in after the stock fell after the dividend has been paid might yeild better results than grabbing the quarterly dividend....

"No Guarantees"

Farma I ran into this almost a decade ago. I would draw off my home line try to get in a stock before the ex date and sell it the next day and put the credit line back in the bank. It can be done but by law the stock value is reset down the amount of the dividend the next trading day to prevent this very thing.

However here are a couple tidbits. The day after a dividend is paid is quite active because the drips are automatically buying back in so you can usually ride that action and sometimes just waiting an extra few days the stock is right back to its pre dividends level.

Actually the better strategy is to buy the stock after the ex day.

[farmaholic]

I just find it interesting how they try to grab a quick buck, could be very short term market exposure. Maybe things go bad and dividend payout doesnt cover a market drop and your stuck with a loss if you sell.

No guarantees.

[Oliver88]

I’m not sure about Enbridge but some stocks that are setup for DRIP will actually offer a discount for a quarterly “DRIP buy”.