Dividends and last day to trade (LDT)
#16
The keyword in that quote of yours is "in practice", which means it is not guaranteed that the price will drop after dividends, or drop very significantly.

But yes, you can monitor the stock to see what happens after dividend payouts, just as you can monitor any stock for dips and rises.

Heck, you could also do the reverse if you feel confident in the calculated risk, i.e. buy shares now before the dividend payout (which will be in a while), and then hopefully sell the shares before/on dividend payout day, when/if it climbs to acceptable profit levels.

All in all, as always, since it a stock market, there will always be risk involved, just because the trend happen in the past, not guaranteed to happen again.

#17
(06-30-2016, 01:41 PM)dieWerner Wrote: JSE:LEW actually looks more attractive:

for example: Lewis Group LTD (JSE:lew) has a current price of R44.98 per share, and a dividend of R3.02 per share.
- If I buy 100 shares: R44.98 x 100 = R4498,
- wait until 2016/07/11 for the payout of R3.02 x 100 = R302
- sell the shares again.
- getting R302 from the initial amount of R4498 means a growth of 6.7% in a week.
- (ignoring fees etc., and my total lack of how financial maths works...)

Although only slightly more than Invicta, but the lower share price means I could buy three times as much and save on the fees...

So dieWerner, did you do it?

I also want to try it, but it is not worthwhile if you have a big capital account to start with...


#18
(06-30-2016, 02:24 PM)dieWerner Wrote: bought R5k each of OMN, LEW, and TFG, which should pay out on 2016/07/25.

The LDT for them is the 2016/07/19, but I definitely won't remember to go and buy three weeks from now. But now I need to remember to check if the dividends pay out on the 25th...

Did the dividends pay out? Do it pay out to you normal cash account at the broker?


#19
Sorry for the late reply, I didn't get an email notification for this thread like I usually do?

On the 14th July I decided to go all in with my Demo account on EE, sold all the kark that I had and bought as much as I could in LEW, and the share did well, guess other investors had the same idea, on the LDT I was up by 4% or something in a week and a half.

The morning after the LDT, the damn price fell by 7.5%, like stated in the article mentioned.
According to this article:
"[...]In practice, the stock actually drops in price by the amount of the dividend once the ex-dividend date passes. If you sell the stock at that time, you do get your dividend, but you get less for the stock because the dividend is subtracted from the stock price.[...]"
If I had remembered I would have sold everything at 9:01 that morning (while the price was falling) like I said I would... Sold this morning (at a loss, but if I get the dividends it should balance it out) and put everything in JSE: PGR, as their LDT is 1st Aug, trying my luck... so far I'm -1.67% loss...

Anyway, NO, NO DIVIDENDS HAS BEEN PAID INTO MY ACCOUNT OR REINVESTED automatically, I emailed them this morning asking WTF, but no reply yet, only getting spam from them trying to sell me a Fully managed account... with some kind of Fee freeze for the rest of the year...

BUT I have DIVTRX in my TFIA, and those dividends got paid into my account, not reinvested automatically... screenshot attached:

Image(s)
JSE Finance Forum Attachment - Filename: divs from TFIA.PNG   

#20
Don't think they pay out dividends to the DEMO account on EE... which is a shame actually as you will not see the real growth.


#21
(07-28-2016, 04:45 PM)padjakkels Wrote: Don't think they pay out dividends to the DEMO account on EE... which is a shame actually as you will not see the real growth.

I asked that in my email, but still no reply.

Think I'll resend the same email every hour until someone answers...

#22
(07-29-2016, 07:34 AM)dieWerner Wrote:
(07-28-2016, 04:45 PM)padjakkels Wrote: Don't think they pay out dividends to the DEMO account on EE... which is a shame actually as you will not see the real growth.

I asked that in my email, but still no reply.

Think I'll resend the same email every hour until someone answers...
Haha you spammer!!

Sent from my SM-A700F using Tapatalk


#23
(07-29-2016, 07:53 AM)padjakkels Wrote: Haha you spammer!!

Sent from my SM-A700F using Tapatalk


Lol, spamming myself with their Autoreplies!

#24
(07-28-2016, 04:45 PM)padjakkels Wrote: Don't think they pay out dividends to the DEMO account on EE... which is a shame actually as you will not see the real growth.

got a email from them just now, confirmed that dividend functionality is not available on the demo account...

#25
Ahhh... okay. That sucks.

Sent from my SM-A700F using Tapatalk







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