Dividends

Discussion in 'Trading' started by fandyur, Dec 31, 2016.

  1. fandyur

    fandyur

    Many stocks and etf's pay dividends.
    I'm looking to buy low volatility and low price ones before the dividend and then sell when it goes back up to my purchase price.
    Anyone have any experience in this area?
     
  2. Tim Smith

    Tim Smith

    One of the oldest games in the book, well documented, lots of people play it using CFDs or spread bets.

    You haven't stumbled on anything magical, it won't be like printing money if that's what you were expecting.

    Time to return to cum div is one of the things to factor into your expectations. As is the fact that if you want the dividend, you'll need to be holding before ex div.

    If can be a profitable game to play, but like most things in trading, only if done correctly.
     
    Last edited: Dec 31, 2016
    CyJackX likes this.
  3. Handle123

    Handle123


    ROFLMAO, sell when it goes back to your purchase price, that's funny, cause it can take close to where next dividend comes out or go into short or long term decline, then you start wondering if this method was any good to start doing. It is better to design a method that trades stocks and make sure you buy dividend paying stocks. Find commodities that have declined for a number of years and then bottom, as they start going up with Crude Oil, buy oil related stocks that pay dividends, but instead of selling them, better to keep them maybe couple years and you making money on capital appreciation, dividends and learn how to do covered calls and put spreads for more.