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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?


To: Dennis who wrote (2444)6/10/2003 6:58:54 PM
From: bob wallace  Read Replies (1) | Respond to of 2561
 
no, all I do is buy on the announcement, and then hold until the stock rises the amount of the dividend, plus 2 cents for costs,and then I sell. In this way I "capture" the amount of the dividend without holding for the dividend itself.

the reason I don't hold for the dividend is that with these large dividends, the stock will always drop the amount of the div on the ex date, plus some more. Since I don't intend to hold the stock anyway, it seems selfdefeating to me to hold through the ex date.