REITS - Buying 1 - 2 weeks before going ex-dividend Message Board

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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend

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To: Dennis who wrote (2383)	2/9/2003 6:50:30 PM
From: bob wallace	Read Replies (1) of 2561

I am currently looking into this very thing. What I have noticed in eyeballing NLY in a very genral way is that if price is in a downtrend, then there does not seem to be any significant rally before or after the dividend. and it appears that if you buy for the div then you will loose if you try to sell afterward. conversely, if the stock is in a rising market, it seems that there is no significant sell off after the div is paid. I found some conformation for the action noted above for div stocks in a bear market from an Australian site - but so far,that is it. therefore, my feeling is, I had better like the price of NLY in March if I am going to buy for the div. if I like the price (meaning that I like the yield) then I'll close the short and go long - else, I will close the short and then immediately put it on again after the ex-div date. I had been looking at 3 x times for the amount a stock drops after the div, but that is not anything but eyeball. one thing for sure,markets over react. and again, it looks like there is not much of a drop at all in a strong up trend.

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