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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: Debt Free who wrote (3114)12/23/2009 9:44:56 AM
From: JimisJim  Respond to of 34328
 
Debt Free: thx for the input... only have a problem with #4... my experience is that many short ETFs and especially ultra short (as well as ultra long) is that they seem to be more geared toward frequent traders -- they are designed to track the underlying index (or inverse) moves on a daily basis minus fees and expenses and many use derivatives and/or futures contracts to do that... seems like a lot of "leakage" when held for any length of time and the longer one holds, the bigger the problem... almost like they reset every day... or at least that's the way they seem to work from my perspective... have tried a few and may use them for short term hedging when my work indicates high probability of down move.

Am already employing some form of all the rest -- currently have about half of combined PFs in cash or cash equivalents... and have OTM CCs on my largest position... can't really short stocks in my large PFs that are retirement accounts and have trailing stops on most positions already.

So I guess I'm covering as many bases as possible to preserve capital which is job one for me right now.

Thanks and good luck,
Jim



To: Debt Free who wrote (3114)12/24/2009 10:56:56 AM
From: posthumousone  Read Replies (3) | Respond to of 34328
 
I have dividend question.
Say you buy 100 shares of xyz prior to the ex-div date at $10.
Dividens are reinvested
The stock rises to $11 and you put a stop in 10.50.

the day the div is paid out the stock drops to 10.40 so you are stopped out 10.50.

What happens to the dividens? Do you get paid them since you were a shareholder the on ex-div date?
Where would they go if you were set up as DRIP because you no longer hold the stock.

I guess bottom line is I am looking for good stop points on div stocks where i wont lose the stock if the price goes down the day the dividend is paid out.