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Strategies & Market Trends : Dividend Investing

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To: bob wallace who wrote (181)3/27/2003 10:54:02 AM
From: Cosmo Daisey   of 387
 
Hi Bob,
My dividend trading in the past was mostly the same stocks with bigger positions and fewer trades. Stocks that I felt comfortable with didn't require much T/A before entry. I developed a utility stock dividend return program that was followed by quite a few people. Of course the utility stocks stopped performing so that was the end of that. Those stocks were unique in that they pulled back on ex and recovered in about a week so the strategy was to capture the div. and the pre-div. gain. I played the same stocks again and again. A group of stocks with some ex in Jan, some Feb, some Mar is ideal in that the Jan's are ready again in Apr, Jul, and Oct and so on.
The brokerage model is different in that they don't necessarily need to break even or profit from the sale following the div. payout. They are playing the difference in taxation in div vs cap gains. Div income being preferred. Example buy @ 20, collect .40 div, sell @ 19.6 Yield is .40 div and .40 loss on sale. Better position than .40 short term gain.
Best,
Cosmo
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