Dividends

Using Instalment Warrants to take Advantage of Reporting and Dividend Seasons

Sat, 04/03/2006 - 07:41

Instalment warrants give you the right but not the obligation to purchase underlying shares; advantages - reporting & dividends

Dividend seaon comes straight after the reporting season and for the stocks listed on the Australian Stock Exchange (ASX) these events come around yearly around February and August. Using instalment warrants allows investors and traders to maximise their dividend income. Investors may want the exposure to the franking credits as well as the increased income, while traders may see the increased dividend and franking credits as a bonus to their regular trading strategy - perhaps looking to profit after an ex-dividend rebound if the shares are especially bullish.

Buying a stock After Ex-Dividend Date - Who gets paid?

Fri, 17/02/2006 - 23:24

Who gets paid if you bought a share after the ex-dividend date but before the record date

If you buy a stock on or after the ex-dividend date but before the record date the person you bought the stock from gets the dividend.

Some traders use this as an opportunity (as price usually drops on ex-dividend date depending upon dividend size and market demand) to buy into a bullish stock.

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