I am too cash heavy. Over 12 months is fucking stupid, but I am fucking stupid. Need to just invest my way into something
It’s hard to find something stable. I would normally say real estate, but anybody wanting to get into residential real estate investments right now is an idiot. The laws are completely against you as a landlord, and the fear of a bubble burst makes flipping a game of Russian roulette. 12 months isn’t enough to get into commercial real estate. Physical precious metals can be a solid play though.
I am too cash heavy. Over 12 months is fucking stupid, but I am fucking stupid. Need to just invest my way into something
It’s hard to find something stable. I would normally say real estate, but anybody wanting to get into residential real estate investments right now is an idiot. The laws are completely against you as a landlord, and the fear of a bubble burst makes flipping a game of Russian roulette. 12 months isn’t enough to get into commercial real estate. Physical precious metals can be a solid play though.
I am thinks getting back into some of my old fav BA or CVS. I am actually not looking (or believer of) for diversification away from the market risks.
I am too cash heavy. Over 12 months is fucking stupid, but I am fucking stupid. Need to just invest my way into something
It’s hard to find something stable. I would normally say real estate, but anybody wanting to get into residential real estate investments right now is an idiot. The laws are completely against you as a landlord, and the fear of a bubble burst makes flipping a game of Russian roulette. 12 months isn’t enough to get into commercial real estate. Physical precious metals can be a solid play though.
I am thinks getting back into some of my old fav BA or CVS. I am actually not looking (or believer of) for diversification away from the market risks.
I am too cash heavy. Over 12 months is fucking stupid, but I am fucking stupid. Need to just invest my way into something
It’s hard to find something stable. I would normally say real estate, but anybody wanting to get into residential real estate investments right now is an idiot. The laws are completely against you as a landlord, and the fear of a bubble burst makes flipping a game of Russian roulette. 12 months isn’t enough to get into commercial real estate. Physical precious metals can be a solid play though.
I am thinks getting back into some of my old fav BA or CVS. I am actually not looking (or believer of) for diversification away from the market risks.
Dividend stocks are nice too
Have you ever used a strategy of buying stocks with dividends coming up and selling them after they become ex-dividend? Logic says prices should drop immediately after by the amount of dividend but they usually don't.
For example, BTI became ex-dividend on the 25th of March. I bought some about a month ago and then analysts upgraded it. A pending dividend was what convinced me to buy the stock that I did like several years ago but had since fallen out of my favor.
Dividends are priced into the stock because most dividend paying stocks have a stable and reliable schedule
Yes. That is the theory. But not what seems to happen in the real world. Ergo, my question.
Example. BTI close on 3/24 (weds) at $39.55. Opens the next day (after becoming ex-dividend) @ $38.18 which is a drop of 6.9% (pd 2x/year) annualized vs annual div. of 7.24%. A day later (fri) it closes at $39.39.
The day dividend is earned - the stock wasn't fully discounted and it was off just pennies after less than 48 hours later.
Again, annual div @ 7.24 % seems to be priced in at less than 1% with the $.16 drop from 2 days previously.
I am not saying this happens for every time a dividend is earned but it is often enough for me to ask the question.
If they seem to bounce back in short order because uninformed traders overlook the impact of a dividend (and buy based upon an unadjusted price drop) then that supports my theory that its possible to make money by chasing dividends.
I put your answer down as a theoretical no. And will continue to look for actual answers.
Comments
For example, BTI became ex-dividend on the 25th of March. I bought some about a month ago and then analysts upgraded it. A pending dividend was what convinced me to buy the stock that I did like several years ago but had since fallen out of my favor.
Example. BTI close on 3/24 (weds) at $39.55. Opens the next day (after becoming ex-dividend) @ $38.18 which is a drop of 6.9% (pd 2x/year) annualized vs annual div. of 7.24%. A day later (fri) it closes at $39.39.
The day dividend is earned - the stock wasn't fully discounted and it was off just pennies after less than 48 hours later.
Again, annual div @ 7.24 % seems to be priced in at less than 1% with the $.16 drop from 2 days previously.
I am not saying this happens for every time a dividend is earned but it is often enough for me to ask the question.
If they seem to bounce back in short order because uninformed traders overlook the impact of a dividend (and buy based upon an unadjusted price drop) then that supports my theory that its possible to make money by chasing dividends.
I put your answer down as a theoretical no. And will continue to look for actual answers.
Thanks,