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 (2385)	2/9/2003 10:11:33 PM
From: bob wallace	Read Replies (2) of 2561

declaration date is not known in advance, although you can guess it by studying prior dividend history (available on annaly.com) So at that point it's just a crap shoot - you really try to determine two things: what will be the lowest price between the last ex-div date and the new announcement date, and will the stock continue to rise after the dividend. Depending on what you decide and your timing, you can buy and hold through the ex-div date, buy and sell just before the ex-div date, etc. whatever seems to be in the cards recently MCY declared a dividend and a 10% dividend increase. I thought that the stock looked like it was a support, and that the increase would generate some interest. so I waited an hour or so after the open, and then bought the day of the announcement. I immediately put in a sell stop order for the amount of the div plus 4 cents to cover the cost. I thought it might take a couple of days to get that much. in fact, I was out with the profit in a few hours. I tried to reenter the same trade after the stock had fallen some, but it never happened, and I got even - now the stock has been down steadily.... so I got the dividend, but not in the conventional way. and since MCY is in a steady decline I would not now buy and hold for the dividend - it is not likely you would be able toget out for what you paid... buying the stock for the dividend only makes sense if you can sell it back for at least the same price you bought it, plus a bit for commissions. If you buy right you can make a bigger amount on the capital gain that you do on the dividend. but as I say, in a down market, you usually don't have a chance to sell for the price you paid

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