Saturday, February 25, 2017

Queries from readers

Just sharing some email queries from readers that I have answered over the years. These queries were sent via email. Have removed names.

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Hi

I chanced upon your site and would like to ask if the stock dividends is going to be paid out in Dec for example, when should we buy in?

Thanks
XXX
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Hi XXX,


You have to buy the stock before it is ex-dividend to be entitled to the dividends.  Stocks which are ex-dividend will have XD beside the stock name in SGX website.


If you are talking about dividend capture strategy, then it is more difficult.  I personally find it hard to determine a correct entry point to buy-in to get the dividend/sell at a profit larger than what the dividend would have been.  If you are buying a stock for the dividends, I guess it does not really matter when you buy in.  Of course, some basic Technical Analysis might help in the long run.


Regards,

FF

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Hi FF

Thanks for your email.

So if I spot that there is a ex-dividend stock, and if I buy in, will I be entitled to the dividends? Or would it already be too late?

Thanks
XXX

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Hi XXX,


It will be too late by the time it is shown as XD

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