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Old Nov 30th, 2009, 01:23 PM   #19
Martin Gale
 
 
Join Date: Jan 2006
Posts: 215
Quote:
Quote from el pollo:

Lemme' ask yous this; If you were the "owner of record" on those days would you still be whining about receiving the dividend?

Read the original post, moron. In this case, the trade and dividend amounts are peanuts. But if one has to factor in the dividend when computing risk/reward for stocks with dividends, things obviously get complicated.

Again, this was my question: How does one account for dividend in a risk/reward model? If you don't comprehend the question, spare us the sarcasm and crawl back under your rock and let someone else explain.
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Old Nov 30th, 2009, 01:32 PM   #20
Martin Gale
 
 
Join Date: Jan 2006
Posts: 215
Quote:
Quote from DHOHHI:

Uhhh why do you say that? If a stock is acting weak nothing wrong with going short. I've been short a stock the last 2 ex-dividend dates and had to cough up $$$. If I'm making money on my trades the dividend cost is negligible.
Exactly. Thanks for a reasonable reply. I have no problem with risk. I have a problem factoring dividend into risk/reward. Haven't thought this through. You obviously take on more risk, which may not be worth it. This was the crux of my question, which the trolls here ignored. ET posers like el pollo love it when someone acknowledges a losing trade because it makes them feel like they have company in their general failure.
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Old Nov 30th, 2009, 02:18 PM   #21
DHOHHI
 
 
Join Date: Apr 2003
Location: Barrier Island off SE coast of US
Posts: 1,762
Quote:
Quote from Martin Gale:

Exactly. Thanks for a reasonable reply. I have no problem with risk. I have a problem factoring dividend into risk/reward. Haven't thought this through. You obviously take on more risk, which may not be worth it. This was the crux of my question, which the trolls here ignored. ET posers like el pollo love it when someone acknowledges a losing trade because it makes them feel like they have company in their general failure.
I sometimes reduce my position prior to the dividend coming into play. But that decision is impacted as to how much $$$ I'm up (or down) at that point in time. If I have a decent profit going I may stay short my entire position if I feel the stock will continue to act weak. Overall market sentiment also influences me some.
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Old Dec 2nd, 2009, 03:45 PM   #22
Hurricane
 
 
Join Date: Jan 2003
Posts: 766
Quote:
Quote from Bob111:

this bring us to another question-how do you report dividend accruals on your taxes?
you can't put negative number in dividends received
Cash basis tax payers don't have to report accrued dividends. It's only reported in the year actually received/paid. If received, it's dividend income reported on form 1040. If paid, as is the case if you held the stock short on the record date, it adds to your basis which reduces the amount of capital gains reported on Schedule D when the stock is purchased back.
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