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Re: Anyone trade HIGH DIVIDEND STOCKS?
To answer the underlying question...yes. I traded PCU, SSW, and TNH over the last 12 mo., but not because of their dividend. They have just seemed to be popular trades. But, the dividend does help me maintain peace of mind through the volatility, and give me extra reaction time just in case I need to "jump ship". So maybe it did play a role in my selections. The main thing to watch is the economic cycle. As the previous trader may have mentioned, anything under the Fed rates 5 +%, I would not consider to be a "high" dividend. Remember, the earlier you get in, then the higher the dividend is for you on a % basis. Market forces suggest that the price will rise until the dividend is at least near the fed rate anyways. But watch the price performance near the ex-div date. You may be better off just trading around the core position. Financial textbooks state that the stock is worth less every time they actually do pay a dividend. | |
Magnumrp,
thank you for your detailed response. I will keep an eye on these and try to guess your moves. :)
Best luck to you!
crzydream (www.chooseISP.net)
Today in my portofolio: SHLD, SMRT, NYX, VC