Originally posted by: erwin1978
Originally posted by: jakedeez
TELOZ has been paying on a quartly basis, and over the last year they paid $2.73825/share... (including the x-div 12/27/07) And yes you have to buy the stock by the ex-date, ot xdividend date, and hold it through the record date (usually three days later (actually you only have to hold in on the record date, but since stock trades usually clear in three days you have to own three days before))
If you own shares now, you will get a payment on Jan 10 of $0.685/share, and you get another dividend aprox every four months assuming they keep paying the dividend.
How do I find out the ex-date? This dividend payout seems like a nice strategy to earn easy money. So I only need to own a stock three days prior to the record date you say.
Yahoo finance if you don't have an account with a brokerage... they don't have long term schedules, but usually follow a similar pattern year over year.... and despite everyone telling you that its a bad way to invest since the price of the stock will often open down by the value of the dividend, this isn't really such a one sided issue. Stocks, esp large caps often have DRIPS (div reinvestment programs) which means that over the long term dividends will generate some degree of buying pressure. Also there is the fact that stocks, especially ones that have long and solid histories tend to go up, thus, dividends are a major component of a portfolio. While some stocks are very high in price and may not be as high as they are today if they paid div (think BRKA/B) it is also hard to imagine that if say, XOM had never paid a dividend there stock would be worth some much higher value based on them simply holding cash. Dividends come in many flavors, but basically you have two forms...
1. A Company has grown large enough that they believe that further investment in their business model of the amount they pay out in dividends would experience significantly reduced marginal returns, thus they decide to return capital.
2. A financial or realestate based company that throws off an income stream as a major component of their business model. (REITs, Banks, Brokers ect...)
The first may come down more based on the payout, since it is a value play based on their ability to generate income by investing in their business. Conversly if they cut a dividend rate, their stock may not be as hurt, because it could be viewed as them deciding to reinvest in their business.
The second would be less likely to go down with a dividend payment, as a major part of their business model is generating an income stream... rather then investing in business ventures themselves... although they can also be value plays, and do invest, they do it to generate income, thus their cutting of a dividend would have a more dramatic effect on their per share price.
All in all, investing for dividends is not a bad idea, there are many funds that do just that, however buying a stock on the day it goes xdiv, then selling it the next day is a very difficult strategy to do well and requires very sophisticated analysis. I would suggest if you are interested in a dividend strategy, look for issues with strong value and dividends and hold them for more then a day.
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