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


To: bob wallace who wrote (181)3/27/2003 10:54:02 AM
From: Cosmo Daisey  Respond to of 387
 
Hi Bob,
My dividend trading in the past was mostly the same stocks with bigger positions and fewer trades. Stocks that I felt comfortable with didn't require much T/A before entry. I developed a utility stock dividend return program that was followed by quite a few people. Of course the utility stocks stopped performing so that was the end of that. Those stocks were unique in that they pulled back on ex and recovered in about a week so the strategy was to capture the div. and the pre-div. gain. I played the same stocks again and again. A group of stocks with some ex in Jan, some Feb, some Mar is ideal in that the Jan's are ready again in Apr, Jul, and Oct and so on.
The brokerage model is different in that they don't necessarily need to break even or profit from the sale following the div. payout. They are playing the difference in taxation in div vs cap gains. Div income being preferred. Example buy @ 20, collect .40 div, sell @ 19.6 Yield is .40 div and .40 loss on sale. Better position than .40 short term gain.
Best,
Cosmo



To: bob wallace who wrote (181)3/27/2003 8:54:55 PM
From: Cosmo Daisey  Read Replies (2) | Respond to of 387
 
Hi Bob,
I checked on Big Charts java charts showing ex div date and the runup before the div seldom works. At least not enough for it to be valid on my terms. If you wait 3 or 4 days to validate before entering you miss the move. Because the gain is small if you miss on one it would probably take two hits to make up the loss. I am looking for a site that reports dividends especially increased divs., that may be something that would work better. You can day trade ETF's for .20/.50 a day with more consistency. I bought a stock in Jan that had a special div of 1.25 and it ran up 3.0. Also EPR has been on a tear following an increase, I am holding for now. I wish there was an easy system out there but after 35 years of lookng this is still the hardest job in the world.
Best,
Cosmo