Friday, October 14, 2016

Dividend Plays: A new small-lots experiment

I'm trying something new with my experimental small-lots account with Robinhood Markets: Buying shares for the short term in order to capture dividends, a practice known as dividend capture.

Accordingly, I've opened positions in GOOD and SNH.

Both have bull ratings from Zacks Investment Research and have histories of not falling sharply after dividend payments. Both go ex-dividend on Oct. 19.

GOOD pays dividends monthly with an 8.41% annual yield at today's rate and share price.

SNH pays dividends quarterly with a 7.08% annual yield at today's rate and share price.

I haven't formulated exit rules yet. For this to work I suspect that I'll need to hold a position longer than with other strategies in order to avoid whipsawing my positions because of ex-dividend price response.

See Friday's Small Lots for details of the trades.

By Tim Bovee, Portland, Oregon, Sept. 14, 2016

Sweat Equity: Inside the New Economy of Mind and Body
by Jason Kelly


Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.

Small Lots: A new strategy discusses the thinking behind the analysis that identified these trades and can be read here. The symbols noted in this post are intended for trading on a commission-free platform such as Robinhood Financial. See my initial post on the strategy here.

I can be reached via comments on Private Trader posts or by email at


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Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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