High yield dividend list: 8/26 - 9/9

Maybe you can explain to this guy how you can avoid having the drop in value happen to you by "doing your research and checking the stock activity around dividend dates", like you said in the other thread.

So in theory, every single dividend here should have a fall of equal percentage to the dividend paid. Meaning the stock value of AGNC should fall exactly 12% after 8/29, correct? Same with ITUB and GARS, which should both fall exactly 13.5%.

Those percentages are annualized. You'll have to adjust them for whatever the dividend payment period, is, probably quarterly.

>be investor
>buy dividend stock
>stock falls by % of dividend paid
>government takes % of dividend payment
>literally lose money with each and every dividend
Must suck to be investors.

do not fall for the dividend meme.

Dividends are literally pure money loss. Way for businesses to pay the government and screw the investors.

>I make my money this way
No you don't. What you get in dividends is always offset by the decline in the stock price on the same day, sometimes more.

Buying dividends is always a losing strategy because of the transaction costs and taxes. It's been studied a million times.

If we had mods, you'd be banned for shilling this bullshit.

>A hypothetical share could be trading at $20 before the ex-date and the shareholders are entitled to an upcoming quarterly dividend of $0.25. On the ex-date, the price of the stock should drop to $19.75 but those investors only buying the shares now are no longer entitled to the dividend distribution. Basically, an investor can buy the stock for $20, hold it for one day and sell it on the ex-date for $19.75 and still receive payment on thepayment date. The potential to generate quick accessreturnsstems from the phenomenon whereby the stock fails to fall to $19.75 as theory would suggest, and even when the predicted fall actually does occur, the shares recoup their value shortly thereafter.

investopedia.com/articles/stocks/11/dividend-capture-strategy.asp

Please respond.

Because investors purchasing the stocks on the ex-date no longer receive the dividend, theshare priceshould theoretically fall by the price of the dividend amount. In practice this does not always happen. Depending on the price movement, shares are then sold immediately on the ex-date or when the price bounces back to its original value.

Fair enough, it looks legit. Not what I expected, but looking at OP I can see the logic and warning. I guess you really did your research.

The statement "the shares recoup their value shortly thereafter" is conclusory, unsupported, and mostly untrue.

Dividend stripping has been studied time and again, and proven to be an ineffective and losing strategy.

rfs.oxfordjournals.org/content/7/4/711.short
people.stern.nyu.edu/eelton/working_papers/marginal_effects.pdf

Also, to be clear, the fall in the stock price isn't exactly 1:1 because of taxes. In reality, the decline in the stock price exactly offsets the actual realized gain of the investor realizing the dividend. It's literally a zero sum game that you cannot win. At best, with zero transaction costs, you might break even in the long run.

>Buying dividends is always a losing strategy because of the transaction costs and taxes
A million times this. There is a reason it's against the law for agents to sell dividends...

>shilling this bullshit
Well, according to him, he's not shilling anything.
And apparently, you can make sure your stocks don't fall on dividend day by "doing research".

Eh. Not always, if you invest in high dividend muncipal bonds that are tax free for you (funds that are in your state), you can avoid taxes on it. If you have a free dividend reinvestment program with your broker who does fractional shares, then its not so bad.

But if you are paying taxes and have to pay a broker fee every time you reinvest, its terrible.

thank you man. feel free to share whatever you want. ignore haters.

i think it's great that OP started this thread.. so many people come in here just to bash, thats sad.

I don't have a whole portfolio of Dividend stocks but i have a few monthly etfs and stocks in my portfolio that i plan on leaving in their for atleast a year. There are also some speculation stocks in my portfolio and some S&P500 and DJIA stocks in it aswell.

If you don't want to talk about OPs portfolio then you are free to leave the thread and maybe even start your own shit thread.

Veeky Forums is full of bashers for NO REASON holy shit!!

You're a fucking idiot. We're not bashing OP's portfolio, or even the concept of buying dividend-paying stocks for long-term appreciation and accumulation.

We're specifically pointing out that OP's proposed strategy of buying dividend stocks immediately prior to the ex-dividend date is a losing play.

If you're too stupid to understand the discussion, don't jump in and white knight just because you see the word "dividends" and think you have to defend this somehow. Fucking retard.

>Stage Stores, Inc. (SSI), Ex-dividend (EX-D) date 8/26, Payment date 9/14, 9.7% yield.

Closed yesterday at $5.97. Today (dividend day) SSI fell almost 20% to $5.67 at the open.
Currently trading at $5.71

Guess you "didn't do your research" on that one, huh OP?
How much did you buy to capture those sweet dividends?

Whoops, 5%.

>buy dynamic growth share
>company becomes successful and starts paying better dividends each year
>make money
>???

You're a retard. Don't forget kids, warren buffett prefers to hold his shares forever.

>>buy dynamic growth share
>>company becomes successful and starts paying better dividends each year
If it's a growth stock, then it's not going to be paying dividends. Growth stocks, by definition, pay out little to no distributions because they funnel that money back into the business to fuel growth and expansion.

Also, invoking Warren Buffett or any other "star" investor is usually a sign that you're too stupid to make an argument yourself. Since I'm not even sure what you're advocating here, I'm going to go ahead and say my impression is correct.

My argument, and I'll make it simple for your benefit, is that capturing dividends is a fine way to go, and it can be done even if you're buying dynamic growth shares.

If a growth company grows in earnings per share by 20% year on year and the dividend rises each year, if you have a good number of shares you will be laughing at what a good buy you made eventually.

Not only that of course, but the capital appreciation because of the growing share price means you can even feel good if you end up having to sell.

I don't just invoke warren buffett, but every good investor, and every authoritative text on investing. People shouldn't try to time markets. If a company is in a strong financial position, buy and hold.

>capturing dividends is a fine way to go
Define "capturing dividend."

If you mean buying and holding a diverse portfolio of stocks that happen to pay dividends, then fucking duh. No one ever said that dividends were bad.

If you mean intentionally skewing your portfolio towards dividend-paying stocks, then you're probably making some very tax-inefficient decisions that are going to undermine your long-term accumulation. But that's a subject for another thread.

If you mean dividend tripping, like OP is advocating, then you're just as retarded as him, for reasons that have been explained ad nauseum.

>If a growth company grows in earnings per share by 20% year on year and the dividend rises each year,
You clearly have no fucking clue what "growth company" means. Stocks with rising dividends are most certainly not growth companies. Jesus H. Christ, this board.

I can tell you mean well, and yes buy-and-hold is the correct strategy, but you really need to work on your education. First, you can't correctly articulate your thoughts or even use simple financial terms properly. Second, you erroneously think that you're somehow disagreeing with something I said earlier in the thread. Please stop making a fool of yourself; you give a bad impression of long-term investors when you act this way.

Preferreds have a call date, so current equity is usually a moot point.

i have something that's giving me 3000% a year
you'll never find it, ether

ftfy

couple questions about why OP might be right.

1. Major downside is taxes. Buying dividends in Roth IRA?
2. Buy dividend. Price goes down proportionally. Hold for a month. Price sometimes goes up?

why not.

>1. Major downside is taxes. Buying dividends in Roth IRA?
Avoids the tax problem, but not the transaction cost problem. And even without either, you're still at break-even, at best. No one invests to break even.
>2. Buy dividend. Price goes down proportionally. Hold for a month. Price sometimes goes up?
If the price was gonna go up, then the price was gonna go up. Sometimes it will. Other times it won't. If you knew with 100% certainty that the price was gonna go up (which you never can), then you'd buy the stock REGARDLESS of the dividend. It's a separate question from whether buying the dividend is a smart move.

1. $8 is not equal to a 2.5% quarterly payout unless you're investing < $320 which maybe most of Veeky Forums is, but I'm not. Or even $16 entry and exit is still less than my dividend payout would be. How are you still at break even? that's just patently false as a blanket statement. I get that you could make more % in another investment, but this is just a theoretical exercise.

2. You didn't provide any reason this scenario wouldn't work. Assuming a 50% up/down probability (just for theory), Half the time you get the dividend and break-even or lose slightly and half the time you get dividend and sell at break even or a little more. Also depends on how long you're willing to hold.

1. I have no idea where these number came from. Probably from your ass.

2. In you example, it's less than 50-50% because the price has already dropped by the time you get the dividend. The price doesn't magically pop back to the prior level. Sometime it does, sometimes it doesn't. You're assuming every stock goes up, which is demonstrably false.

>which is why you look at dividend history and see if it has a history of quickly rebounding or not
Back to OP's original statements. You just came full circle.

I'm OP btw.

>if it has a history of quickly rebounding or not
If it had such a history (doubtful) it'd either be because of the market conditions as a whole (high tide raises all ships) or because it's a strong stock that was going to increase in price anyway, Either way, you'd make more money just going long on the stock than doing the stupid dividend stripping play.

Here's today's chart for the first stock OP picked, SSI.
I can't tell if it has a "history of rebounding" or not,

>Itau Unibanco Banco Holding SA

it is not as high as you claim it to be (I just randomly checked one). And even if it manages to pay their 0.5% monthly, it only adds up to 6.5%

finance.yahoo.com/quote/ITUB?p=ITUB