Dividneds

[Pound foolish]

Do any members trade to make the most of dividends?

I am considering buying Vodaphone to get the anticipated 5% dividend. The share price will go up when it is announced and I could sell shortly after the ex dividend date.

Is this a good idea / trading strategy?

BT price may rise on Thursday forcasted profits are £1318 million Yield 16.8%!

Both telecoms I know.

BUT I bought Premier Foods today at 38 hoping for a quick rise tomorrow when they announce their trading statement.

 

[Technically Fundamental]

You'll be paying tax on the divs if you're in the 40%. This will make your tax return a nightmare so extra accountantcy charges and commissions on the purchase will probably wipe out the benefits. I'd advise against it unless you're buying as an investment.

 

[foredog]

I am considering buying Vodaphone to get the anticipated 5% dividend. The share price will go up when it is announced and I could sell shortly after the ex dividend date.

.

If it's anticipated why will it go up when it's announced, isn't it already in the price?

Old city saying "buy the rumour sell the fact"

Also with regard to buying it for the expected rise, if it rallies before it goes XD then sell it then and you won't have to worry about the tax on the divi etc

 

[Technically Fundamental]

Listen to foredog my man.

Technical analysis is based on the premise that all data relevent to the instrument is encapsulated within the chart.

 

[Pound foolish]

Thanks for the advice. I think the anticipated 5% yield is anticipated by me based on previousl divis!

I take the point about the tax kinda messes it up a bit.

Loved the "buy on the rumour sell on the fact" good one.