Donation

Donation
Donation amount as little as $10. Please donate generously. To donate, click on the sggives logo.

Blog Archive

Sunday, 2 November 2014

Dividend Capture

One crazy method l have used in the past in investing into stock is to re-cycle the stock proceeds on good dividend stock.  Why is this being crazy is that usually investor in good dividend stock will buy and keeping it for passive dividend income.

My preference is to get into the stock at a good reasonable price and selling it before its ex-dividend date.  The target selling price will approximate to the nett amount (including the usual transactions costs - bank charges, commissions, etc) of the expected dividend amount payment.

What if the stock price did not rise or fail to reach the target selling price?  Then just holding on to it as to begin with it is a good dividend stock anyway.

Two target group of investors can use this stock investing method.  First being the investor who are lacking of sizable funds;  the nett sales proceeds can be re-cycled into another yet-to-declare good dividend stock.  The second group being those who are sitting idle on a huge pile of cash waiting a market crash; why wait when you can generate some side income and keeping the money working harder for you.

Additional read here :-
http://www.dividenddetective.com/dividendcapture.htm

No comments:

Post a Comment

BrainyQuote

The Motley Fool

NextInsight

PropertyGuru

SGX News

Hellenic Shipping News

Singapore Law

Business Google News

Business Times