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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?


To: Peter W. Panchyshyn who wrote (4172)9/12/2002 2:21:34 PM
From: Lorne Larson  Read Replies (3) | Respond to of 11633
 
Peter: There is no complex strategy involved in dividend stripping. People have been doing it for years, with regular dividend paying stocks. Ideally you want to use a solid stock, which will bounce back after the x-dividend date. The income trusts which pay quarterly are the ones I play. I usually buy before the x-dividend date of the month before. For example, SHN.UN goes x-dividend in late September. I did my buying before the x-dividend date in late August for the monthly paying trusts, the reason being that a lot of dividend strippers want to get the August dividend, and than jump into the quarterly payers. I want to buy before these people switch because they tend to drive up the price a bit.

Actually SHN is not the best candidate for dividend stripping, because it's a little too volatile. The better ones are the less volatile types like TPL.UN and GLH.UN which have a distribution stability rating of S-1 or S-2, and are almost certain to jump back to their normal trading range after the x-dividend date.

On the sell side, I will sell before the x-dividend date if the stock has moved up from my buy price by an amount at least equal to the dividend. If I hold past the x-dividend date, I have found that the stock will usually revert to its regular trading range within 1 week to 10 days of the x-dividend date. That's when you sell.

As a side note, don't assume that just because someone does not immediately respond to your post, that your point is established, and you can start your usual incoherent arrogant braying. Most people, unlike yourself, have a life beyond this board.