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 (2417)	4/19/2003 7:33:25 AM
From: bob wallace	Read Replies (1) of 2561

sounds great - don't know where beaver river is, but I am sure you'll let me know remember, I don't get the actual dividend, just a price increase that equals the dividend plus commission costs. as mentioned elsewhere, I think people are looking for yield in this environment- also Richard Barron, early in this thread (like message #6 or something) demonstrated how some companies could "buy" the dividend by buying right before ex-div and selling on ex-div. something about tax laws allows them to make a profit even though the price of stock drops by the amount of the div (and more) on ex-div. This was verified by another SI poster on the "dividend investing" thread. the same poster pointed out that brokerages have whole departments dedicated to "buying the dividend." so the point is, there is demand for the dividend, and my way is just one way to get it (as I said recently I now think there are 3 groups: the anticipate the announcement group, the buy on the announcement group, andthe buy just before ex-div group. so far, every stock I have picked has made its div plus four cents for expenses between the time I bought it and its ex-div. this does NOT mean that as a trader I have made the div everytime, and in fact my trades are littered with unnecessary double digit "profits" and even one triple digit loss. I will get a chance to see how holding through the bad times works as LXP promptly dropped 30 cents after I bought it because it got downgraded - it closed on the low of the day, so thngs do not look good, but I will try and hold onto that one until ex-div - time will tell. anyway, NNN looks like it will hit my target Monday and that will gve me another chance to try another. NNN is its own nghtmare because it traded at my price about three times Thursday but my shares never got sold -- hope this wasn't the top! Bob

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