It might take longer than Monday for UBA to drop to 21.5...

Adinije:
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

Adinije:
That slight difference matter a lot

It does if you are a trader.
Or holding for short term.
For a long term investor.
Wat matters is buying a good stock.

leparj:


It does if you are a trader.
Or holding for short term.
For a long term investor.
Wat matters is buying a good stock.

Someone was able to increase their holding from around 86k+ units to 155k+ units and u say it doesn't matter? Humor me

@Vananci, pls teach me thy ways. Make I PM u

leparj:


It does if you are a trader.
Or holding for short term.
For a long term investor.
Wat matters is buying a good stock.

Someone was able to increase their holding from around 86k+ units to 155k+ units without additional fund and u say it doesn't matter? Humor me

@Vananci, pls teach me thy ways. Make I PM u

Exactly!
Something that will take nothimg less than four years of compounding your dividend to achieve...

Adinije:
Someone was able to increase their holding from around 86k+ units to 155k+ units and u say it doesn't matter? Humor me

@Vananci, pls teach me thy ways. Make I PM u

KarlTom:
Exactly!
Something that will take nothimg less than four years of compounding your dividend to achieve...

I wonder how some people process info. How can u say that as a "LONG-TERM INVESTOR ", it is better to hold 86,000 units for long term instead of finding ways to increase your Holdings.

@Adinije

Now you understand better where I was coming from...

KarlTom:
Div is 2.30 (actually 2.07 after WHT)
If UBA value drops 10% it'll lose 2.60.
Do the maths...

Traders are not looking for dividend

KarlTom:
@Adinije

Now you understand better where I was coming from...

The calculation for dividend hunters is that price will cone back up after a while... different ball game for traders

Actually I think it's the reverse.
Dividend hunters don't care about price fluctuations. All they are after is a constant or increasing dividend payout.
Whereas traders buy at a cheap expecting to sell when price goes up ...

SonofElElyonRet:


The calculation for dividend hunters is that price will cone back up after a while... different ball game for traders

Dividend mark down is never a yard stick to say a stock will go south. If you are lucky and it happens in a stock you sold high.It is good and fine but don't come complaining why is it not happening again in a stock after I have sold.It didn't happen in gtb,zenith and wapco.i saw it in access and ucapital. No one can say it will happen in uba.It may or may not happen in any stock.
The same access touched #30 and ucap #25 and had nothing to do with dividends this year.
All I see thr is choice which could turn favourable or otherwise.

Can someone please explain the justification for the markdown of stock prices following dividend payment. It doesn't make sense to me. The dividend paid to shareholders is their share of the profit made over a previous period. It should have nothing to do with the market price of the stock. By marking down the stock price you are taking away the profit earned from the capital gain making the shareholder to gain nothing. Am I missing something somewhere?

Raider76:
Can someone please explain the justification for the markdown of stock prices following dividend payment. It doesn't make sense to me. The dividend paid to shareholders is their share of the profit made over a previous period. It should have nothing to do with the market price of the stock. By marking down the stock price you are taking away the profit earned from the capital gain making the shareholder to gain nothing. Am I missing something somewhere?

So in a nutshell, you are of the opinion that shareholders MUST share in dividend income and capital appreciation

Oliver Twist levels... Not bad sha

Raider76:
Can someone please explain the justification for the markdown of stock prices following dividend payment. It doesn't make sense to me. The dividend paid to shareholders is their share of the profit made over a previous period. It should have nothing to do with the market price of the stock. By marking down the stock price you are taking away the profit earned from the capital gain making the shareholder to gain nothing. Am I missing something somewhere?

Mfunkynation:

So in a nutshell, you are of the opinion that shareholders MUST share in dividend income and capital appreciation

This answer cleared out the questions and other questions I thought

Utalinmou:


This answer cleared out the questions and other questions I thought

That is actually incorrect. There are times when stocks don't appreciate, and yet they are marked down. It is even possible for a stock to have been falling, and yet it is marked down. I have explained why before.

Not by force to take my word for it o.

Here is a copy from another source:

Stocks typically mark down because the dividend payment is a reduction in the company's assets, which in turn reduces the value of the shares. Here are some key points to consider:

1. *Dividend payment*: On the dividend pay date, the company distributes a portion of its earnings to shareholders, which reduces its cash reserves and total assets.
2. *Reduced assets*: As a result, the company's asset base is reduced, which in turn reduces the value of the shares.
3. *Share price adjustment*: To reflect this reduction in assets, the stock price is adjusted downward by the amount of the dividend paid per share.
4. *Ex-dividend date*: This adjustment typically occurs on the ex-dividend date, which is the first trading day after the record date (the date by which shareholders must own the stock to receive the dividend).
5. *Price drop*: As a result, the stock price typically drops by the amount of the dividend paid per share on the ex-dividend date.

This markdown is a normal part of the dividend payment process and reflects the reduction in the company's assets and the distribution of value to shareholders.

That profit is money they could have reinvested for growth, but they decided to share it with their shareholders, hence the value reduction.

ositadima1:


That is actually incorrect. There are times when stocks don't appreciate, and yet they are marked down. It is even possible for a stock to have been falling, and yet it is marked down. I have explained why before.

Not by force to take my word for it o.

Here is a copy from another source:

Stocks typically mark down because the dividend payment is a reduction in the company's assets, which in turn reduces the value of the shares. Here are some key points to consider:

1. *Dividend payment*: On the dividend pay date, the company distributes a portion of its earnings to shareholders, which reduces its cash reserves and total assets.
2. *Reduced assets*: As a result, the company's asset base is reduced, which in turn reduces the value of the shares.
3. *Share price adjustment*: To reflect this reduction in assets, the stock price is adjusted downward by the amount of the dividend paid per share.
4. *Ex-dividend date*: This adjustment typically occurs on the ex-dividend date, which is the first trading day after the record date (the date by which shareholders must own the stock to receive the dividend).
5. *Price drop*: As a result, the stock price typically drops by the amount of the dividend paid per share on the ex-dividend date.

This markdown is a normal part of the dividend payment process and reflects the reduction in the company's assets and the distribution of value to shareholders.

Thanks a lot. This kind of factual response is useful.

The thing is, if you have enough more to buy as much shares as you want, then no need to be jumping in and out.

But for some of us with limited resources, that little build up matters a lot. And we also understand the risk associated with such decisions. If UBA price doesn't go down tomorrow, life goes on. No regrets!

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

You're doing well jare.

I know one of my ogas who would always sell before dividend payment and waited for a while to buy more after dividend. I don't think it has ever failed him. One just has to be patient and stick to plan.

While sometimes stocks go up after dividend, they often fall way lower than before dividend, historically. That's when he buys back with idle money.

Raider76:


Thanks a lot. This kind of factual response is useful.

All these no mean jare, howmuch u made is the koko, are you making money?

Adinije:
I wonder how some people process info. How can u say that as a "LONG-TERM INVESTOR ", it is better to hold 86,000 units for long term instead of finding ways to increase your Holdings.

Now I wonder how u process ya info.
And who says a long term investor shdnt increase his holding?
He shd but not necessarily in the same manner.
I reinvested some of my dividend last Friday by buying 80,000 shares of Zenith @ market price of N34. Was hoping to get Zenith lower but it wasn't falling. Knowing the value of it, buying it at the N34 wasn't a big deal since I am in it long term.
I increase my holdings but not in the manner he is talking about. It works for me.

leparj:


Now I wonder how u process ya info.
And who says a long term investor shdnt increase his holding?
He shd but not necessarily in the same manner.
I reinvested some of my dividend last Friday by buying 80,000 shares of Zenith @ market price of 24. Was hoping to get Zenith lower but it wasn't falling. Knowing the value of it, buying it at the N24 wasn't a big deal since I am in it long term.
I increase my holdings but not in the manner he is talking about. It works for me.

I remember the saying no be only one road dey lead to the market

If it's a market, then it MUST have several roads...

sterlingD:

I remember the saying no be only one road dey lead to the market

Please 🙏, can shareholders still be paid if the stock was bought before the ex dividend date, hold the stock throughout record date, but sell the stock before payment date?

WestPB:
Please 🙏, can shareholders still be paid if the stock was bought before the ex dividend date, hold the stock throughout record date, but sell the stock before payment date?

Yes.
If one holds till the qualification date, he will be paid even he sells b4 Payment date.

Adinije:
The thing is, if you have enough more to buy as much shares as you want, then no need to be jumping in and out.

But for some of us with limited resources, that little build up matters a lot. And we also understand the risk associated with such decisions. If UBA price doesn't go down tomorrow, life goes on. No regrets!

It takes time, effort and stress to monitor prices and trends/information and to target a jump in and jump out. Time & effort is equivalent to money. Not everyone has the time and skill to spend for this jump-in jump-out that may work when done well and may not sometimes as Mr Market has the final say. For those that have the time and skill to invest great - do it!. Otherwise spend time on other stuff.

BERGER PAINT JUST PAINTING NGX RED, NOW LOOKING FOR GREEN PAINTS
For the past 3 month, Berger paint stock price has been on the decline, price now close to its Premium Level at 12.20, but price may likely dip into the Discounted area (blue highlight)

PLAN YOUR TRADES AND TRADE YOUR PLANS

leparj:


Yes.
If one holds till the qualification date, he will be paid even he sells b4 Payment date.

Alright. Thank you

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

This is how to trade the equity market by making use of excellent dividend paying stocks like Access Bank!

leparj:


Now I wonder how u process ya info.
And who says a long term investor shdnt increase his holding?
He shd but not necessarily in the same manner.
I reinvested some of my dividend last Friday by buying 80,000 shares of Zenith @ market price of N34. Was hoping to get Zenith lower but it wasn't falling. Knowing the value of it, buying it at the N34 wasn't a big deal since I am in it long term.
I increase my holdings but not in the manner he is talking about. It works for me.

If you read his post, you will realize that he admitted that he doesn't have enough which is why he used the only tool he has to increase his holdings.

In the end, everyone will stick to what works for them. The most important thing is that we all win

#Cheers

BabsO2:


It takes time, effort and stress to monitor prices and trends/information and to target a jump in and jump out. Time & effort is equivalent to money. Not everyone has the time and skill to spend for this jump-in jump-out that may work when done well and may not sometimes as Mr Market has the final say. For those that have the time and skill to invest great - do it!. Otherwise spend time on other stuff.

True