You don't catch am...

Mfunkynation:

it's always luck with this strategy!
I know it's Uba that you are not lucky to grab

USAfall2024:


Good strategy. But the 10% WHT (withholding tax) will probably be lesser than your brokerage fee. Let’s say your brokerage fee on a #20 stock is 3% (cumulative to sell and re-buy). You lose #0.6 on going for such round trip. Whereas same #20 stock has a 10% dividend yield of #2 so your 10% WHT will be #0.2 per share. At the end, what you’re running from in WHT will still catch you via brokerage fees. Except the stock depreciates considerably after dividend payments (like your UCAP and Access examples) but that’s not a certainty (e.g Zenith is yet to depreciate post-dividend payment).

You are on point!
but he doesn't see it this way. He is looking at increasing his holding from selling higher!

USAfall2024:


Good strategy. But the 10% WHT (withholding tax) will probably be lesser than your brokerage fee. Let’s say your brokerage fee on a #20 stock is 3% (cumulative to sell and re-buy). You lose #0.6 on going for such round trip. Whereas same #20 stock has a 10% dividend yield of #2 so your 10% WHT will be #0.2 per share. At the end, what you’re running from in WHT will still catch you via brokerage fees. Except the stock depreciates considerably after dividend payments (like your UCAP and Access examples) but that’s not a certainty (e.g Zenith is yet to depreciate post-dividend payment).

you are right, Zenith did not drop.

meanwhile i use morgan capital and the brokerage fee cumulative for buy and sell is 2.25% actually

Mfunkynation:

You are on point!
but he doesn't see it this way. He is looking at increasing his holding from selling higher!

I get his point. But is there a 100% guarantee of the share price falling after price markdown? If YES, then his holding is sure to increase. If NO, then he might have to wait for long to enter back or possibly get the stock at higher price (thereby reducing his holding). So las las, it’s not really a bulletproof strategy and just similar to normal stock trading.

Mfunkynation:

it's always luck with this strategy!
I know it's Uba that you are not lucky to grab

has UBA lost 25% so far? if not then u are wrong

vacanci:


you are right, Zenith did not drop.

meanwhile i use morgan capital and the brokerage fee cumulative for buy and sell is 2.25% actually

If we replace the 3% with 2.25%, we will still get a higher cost for the round trip in brokerage fees compared to the 10% WHT.
Note: I am not really faulting your strategy. I am just pointing out that the risk is similar to normal trading (outside dividend payment window) of hoping to sell high and buy lower.

USAfall2024:


If we replace the 3% with 2.25%, we will still get a higher cost for the round trip in brokerage fees compared to the 10% WHT.
Note: I am not really faulting your strategy. I am just pointing out that the risk is similar to normal trading (outside dividend payment window) of hoping to sell high and buy lower.

me i dont do all these maths deeply. what i know is this

i had 210,000 units of access bank

sold all @ N23. used the money to buy at N17

after all the fees

i currently have 277, 740 units. this is a gain of 67,740 units

if i decide to sell that gain now i will get N1,170,513 after commission. And i wont sell until i see it at N23

but if i had kept my 210,000 units without selling, i will earn dividend of N378,000 and when 10% WTH is out it will come down to N340,000.

Its good to know how to play with numbers and pray to be lucky as well.

i have not earned dividend in the past 4 years. what i do works for me

Let me use TRANSCORP as an example.

Proposed Div: ₦0.10
Share price: ₦17.00
Units held: 500,000
Value: ₦8,500,000
Expected Div: ₦50,000 (₦45,000 after WHT)

If I sell all my holdings at ₦18 that's ₦9,000,000 (₦8,820,000 after deductions at 2%)
If I am to reenter at say ₦16, I will be able to get 500,000 units for ₦8,160,000 (2% charges)

Profit Dividend is ₦660,000

Caveat: This is purely based on LUCK and price fluctuations.

KarlTom:
Let me use TRANSCORP as an example.

Proposed Div: ₦0.10
Share price: ₦17.00
Units held: 500,000
Value: ₦8,500,000
Expected Div: ₦50,000 (₦45,000 after WHT)

If I sell all my holdings at ₦18 that's ₦9,000,000 (₦8,820,000 after deductions at 2%)
If I am to reenter at say ₦16, I will be able to get 500,000 units for ₦8,160,000 (2% charges)

Profit Dividend is ₦660,000

Caveat: This is purely based on LUCK and price fluctuations.

u dey see well

Fact remains: everyone should use whatever method, principle, theory or tactics works for them.

The ultimate aim is to make profit...

Every mallam to his kettle... ✌🏽

KarlTom:
Fact remains: everyone should use whatever method, principle, theory or tactics works for them.

The ultimate aim is to make profit...

Every mallam to his kettle... ✌🏽

Low-block defence Lol😂

KarlTom:
Let me use TRANSCORP as an example.

Proposed Div: ₦0.10
Share price: ₦17.00
Units held: 500,000
Value: ₦8,500,000
Expected Div: ₦50,000 (₦45,000 after WHT)

If I sell all my holdings at ₦18 that's ₦9,000,000 (₦8,820,000 after deductions at 2%)
If I am to reenter at say ₦16, I will be able to get 500,000 units for ₦8,160,000 (2% charges)

Profit Dividend is ₦660,000

Caveat: This is purely based on LUCK and price fluctuations.

This strategy is feasible. If the stock did not drop you'll look for another target to enter

vacanci:


me i dont do all these maths deeply. what i know is this

i had 210,000 units of access bank

sold all @ N23. used the money to buy at N17

after all the fees

i currently have 277, 740 units. this is a gain of 67,740 units

if i decide to sell that gain now i will get N1,170,513 after commission. And i wont sell until i see it at N23

but if i had kept my 210,000 units without selling, i will earn dividend of N378,000 and when 10% WTH is out it will come down to N340,000.

Its good to know how to play with numbers and pray to be lucky as well.

i have not earned dividend in the past 4 years. what i do works for me

Congrats on your loot, big man. Particularly love your last line: Do what works for you…more wins to come🥳.

Agbalowomeri:


Low-block defence Lol😂

Who's holding FIRST BANK result oo? They should please release it. Dividend is very important this period.

vacanci:


me this was what i did.

1. instead of N1.8 dividend of access bank, i sold all my holding before qualification date for N23, entered with all the money again at N17. My own dividend compounded directly was N6 (23-17). My total shares increased tremedously

2. UCAP, i sold before qualification at N22.5 to jump the N1.8 dividend. used all the money and entered at N16.8. Dividend compounded was N5.7 (22.5 - 16.8 )

the above was possible because those stocks did not recover immediately as some might do. sometimes this thing na luck. i just took my chance.

e get one wey i don sell all too and waiting at the point of entry, that one done drop 25%, i am waiting for just 5% drop and i am good to go.

I hardly chop dividend directly. i no like that 10% withholding from my proceed.

I go drink beer next year

I did same with UBA. I sold 70% of my UBA stock at 26.9. I am hoping to buy back at #21.5 on Monday

I also sold my NAHCO at 36.3, hopefully, I can buy back at #30

vacanci:


me i dont do all these maths deeply. what i know is this

i had 210,000 units of access bank

sold all @ N23. used the money to buy at N17

after all the fees

i currently have 277, 740 units. this is a gain of 67,740 units

if i decide to sell that gain now i will get N1,170,513 after commission. And i wont sell until i see it at N23

but if i had kept my 210,000 units without selling, i will earn dividend of N378,000 and when 10% WTH is out it will come down to N340,000.

Its good to know how to play with numbers and pray to be lucky as well.

i have not earned dividend in the past 4 years. what i do works for me

It's a game of luck not necessarily strategy

KarlTom:
Let me use TRANSCORP as an example.

Proposed Div: ₦0.10
Share price: ₦17.00
Units held: 500,000
Value: ₦8,500,000
Expected Div: ₦50,000 (₦45,000 after WHT)

If I sell all my holdings at ₦18 that's ₦9,000,000 (₦8,820,000 after deductions at 2%)
If I am to reenter at say ₦16, I will be able to get 500,000 units for ₦8,160,000 (2% charges)

Profit Dividend is ₦660,000

Caveat: This is purely based on LUCK and price fluctuations.

TRUE

No

[quote author=Teledom1 post=129374279][/quote]

vacanci:


you are right, Zenith did not drop.

meanwhile i use morgan capital and the brokerage fee cumulative for buy and sell is 2.25% actually

I always thought Morgan is cheaper than that, when did they increase their fees? Are they still the cheapest? I'm thinking of porting, the last time I checked my broker charged me 1.83% buy and 2.18% sell

vacanci:


me this was what i did.

1. instead of N1.8 dividend of access bank, i sold all my holding before qualification date for N23, entered with all the money again at N17. My own dividend compounded directly was N6 (23-17). My total shares increased tremedously

2. UCAP, i sold before qualification at N22.5 to jump the N1.8 dividend. used all the money and entered at N16.8. Dividend compounded was N5.7 (22.5 - 16.8 )

the above was possible because those stocks did not recover immediately as some might do. sometimes this thing na luck. i just took my chance.

e get one wey i don sell all too and waiting at the point of entry, that one done drop 25%, i am waiting for just 5% drop and i am good to go.

I hardly chop dividend directly. i no like that 10% withholding from my proceed.

I go drink beer next year

I did this to half my UBA holdings yesterday with a wacc of 23.34 sold yesterday at 27.45. I held back a lil less than half of my initial holdings... Just because my Capital gain compared to my dividend yield was more. But because I love the feeling of dividend alert I say make I hold half. Plus who knows, it might not dip as much as ZENITH and ACCESS post dividend... Make I dey observe sha. Because I'm topping up my holdings post dividend... My target entry na 22 and below

All man to his strategy.
All Mallam to his kettle.
This strategy may not work if the price refuses to fall post dividend.
I love the sound of dividend alert on my fone and also love giving myself a little reward directly from the dividend b4 reinvesting.
Plus if you know the worth of wat u are buying, these slight differences in price really doesn't matter.

Jerekre:

I always thought Morgan is cheaper than that, when did they increase their fees? Are they still the cheapest? I'm thinking of porting, the last time I checked my broker charged me 1.83% buy and 2.18% sell

Morgan capital total Sell commission including CSCS and other charges is 1.26%
Buy commission is around 0.99%

The 2.25% I quoted is round trip from sell to buy added together

megawealth01:


It's a game of luck not necessarily strategy

Well, that's what you may think just as some think that TA is nothing.

When I bought dangote sugar, I had 86,500 units. All those times that dangote was doing roller coaster, I was following this same luck of mine. Selling high and wait to catch lower without adding an extra single naira to the investment, I now have 155,210 units.

As some set their microscope on the share prices appreciation, me I am setting mine on increasing my holdings with same initial investment. I no dey get money now and then to invest, so the one I put there, I use an work tirelessly
I understand this my type of luck. Na wetin dey work for me be this

vacanci:


Well, that's what you may think just as some think that TA is nothing.

When I bought dangote sugar, I had 86,500 units. All those times that dangote was doing roller coaster, I was following this same luck of mine. Without adding a single naira to the investment, I now have 155,210 units.
I understand this my type of luck. Na wetin dey work for me be this

WOW. Congratulations

Please how many times do companies pay dividends per year. What's the Qauter like

vacanci:


Well, that's what you may think just as some think that TA is nothing.

When I bought dangote sugar, I had 86,500 units. All those times that dangote was doing roller coaster, I was following this same luck of mine. Selling high and wait to catch lower without adding an extra single naira to the investment, I now have 155,210 units.

As some set their microscope on the share prices appreciation, me I am setting mine on increasing my holdings with same initial investment. I no dey get money now and then to invest, so the one I put there, I use an work tirelessly
I understand this my type of luck. Na wetin dey work for me be this

Great
How do you know when to sell

Utalinmou:


Great
How do you know when to sell

Strong question

Utalinmou:
Please how many times do companies pay dividends per year. What's the Qauter like

It depends... Top banks (UGAZ) pay twice (INTERIM and FINAL)

UBA
GTB
ACCESS
ZENITH

Others can help him/her with a full list

leparj:
All man to his strategy.
All Mallam to his kettle.
This strategy may not work if the price refuses to fall post dividend.
I love the sound of dividend alert on my fone and also love giving myself a little reward directly from the dividend b4 reinvesting.
Plus if you know the worth of wat u are buying, these slight differences in price really doesn't matter.

That slight difference matter a lot

vacanci:


Morgan capital total Sell commission including CSCS and other charges is 1.26%
Buy commission is around 0.99%

The 2.25% I quoted is round trip from sell to buy added together

OK, thanks

https://nairametrics.com/2024/05/11/ngx-lists-n4-075-billion-ava-infrastructure-fund/

Only 4075 units listed at N1m each. No glitch o boss.

Cc yMcy56