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Strategies & Market Trends : Dividend Investing -- Ignore unavailable to you. Want to Upgrade?

To: Cosmo Daisey who wrote (180)	3/27/2003 8:16:02 AM
From: bob wallace	Read Replies (2) \| Respond to of 387

Morning Cosmo, Thanks for your follow up note - it added considerably to my understanding of dividend trading. brokerage firms have a whole department set up to do what you are doing I really appreciate this note. First of all, it helps me understand the why and who of the dividend buying. It gives me some faith that my idea is not too crack pot. And finally, it helps me realize that I will never beat these buyers to the punch, and hopefully this will give me confidence to buy in when faced with a large price jump, which previously would have kept me out. I am also interested in your comments about the stocks that are bought and held for the dividend. I assume these stocks are the large,liquid stocks like GM, JPM, etc which show up on my dividend screens. I was actually thinking of avoiding these stocks precisely because they trade for other reasons than their dividends - I feel like I would have to know too much about their underlying trends to make a good trade decision. By focusing on lower volume stocks, I hope to concentrate on those issues where the dividend is the news. I don't expect I would trade exactly the same stocks each quarter,rather that I would trade from the same pool of stocks (as defined by dividend size, payout ratio, price and volume). Any particular dividend trade depends a lot on chart patterns and entry price... Thanks again for the input Bob