Price rally + Dividends

[lounger]

Hello All,
This site is a godsend really love the commentary, hail Pumpin, Apache Avocado. learnt so much already. Please advise. I hear that you can gain the advantage of price appreciation and also be able to get dividends for those stocks sold if you sell at the right time. Is this true? If so please tell me how. Thx

[Murphy]

Originally Posted by lounger

Hello All,
This site is a godsend really love the commentary, hail Pumpin, Apache Avocado. learnt so much already. Please advise. I hear that you can gain the advantage of price appreciation and also be able to get dividends for those stocks sold if you sell at the right time. Is this true? If so please tell me how. Thx

You are welcome Lounger!
Here is my little contibution to your question.
It is true that you can profit from both capital appreciation and dividend payment. It all depend on your objective of investment and the entry price. If you buy a stock x at N1 some weeks ago and over time, the price appreciated to N1.50 while you are still holding the stock the company whose stock you have, declare a dividend of 10k per share with a closure of register for Friday. In this case if you did not sell your stock before Friday, you will get the dividend declared less 10% tax. If you sell the stock by say Monday next week and the price of that stock after marked down for dividend payment of Friday appreciates to N1.45k then you will have gained 45k in price appreciation. I have omited the commissions for clarity. you will have to subtract your buy and sell commissions from your gross profit to obtain the net profit.

Prices of stock are always marked down (reduced by NSE) for dividend and bonus declared. Many investors are aware of this and it is considered when bidding to buy any equity.

[lounger]

Please how do i get info on register closure dates for the purposes of dividends?

[Murphy]

Originally Posted by lounger

Please how do i get info on register closure dates for the purposes of dividends?

Register closure dates are stated on the floor of NSE usually at the time the dividend and/or bonus are announced. An example is that of Vitafoam that was announced a dividend on 22/01/2008 for a closure date of Feb 18th. There are others too such as Deap Capital announced 28 Jan 2008 for a bonus and dividend with closure date of 12th Feb. Note that the register closure date can be different from payment date and can be announced same date with declaration date or given at another date.
The key to all these is to seek information coming out of NSE which are available on many websites (even on stockmarketnigeria.com) and make your investment decisions on them. you must have the penchant for financial news/information.
Good luck

[lounger]

Cool thx very much appreciated