M&g Share Discussion Threads

[pierre oreilly] 27/3/2024 16:58

Action, my thinking too. As long as the divi is safe (and it looks to me that it is), then lowered interest rates later this year should drive this higher. They are also growing the divi from its current high level - fine by me.

13pish drop tomorrow at opening, but everyone holding now gets the 13pish divi, which they won't tomorrow.

I hate to bang on, but several now have said trading over a divi is money for old rope and is simple even. If someone could explain in simple terms when you buy and when you sell to get this easy money and why it works I'd appreciate it - I just don't get it at all. Thanks in advance.

[helen troy] 27/3/2024 13:42

Good thought Action. Sporting chance outlook is a reduction announced June.

[rongetsrich] 27/3/2024 10:26

I may jump in, a price in mind.

[luderitz] 27/3/2024 10:09

Not me anyone else?

[rongetsrich] 27/3/2024 10:08

Anyone lined up to buy tomorrow?

[action] 27/3/2024 10:06

As it is high dividend it will reach its yearly high if int rates come down this year.

[rongetsrich] 26/3/2024 17:16

Stun, I keep the figures simple, so deal in 1000 blocks of shares. 1p movement per block is £10, so easy and quick maths.

[luderitz] 26/3/2024 16:28

Some good options in the posts above around different ways to make money around ex-dividend day.

A matter of what feels comfortable for you.

[rongetsrich] 26/3/2024 16:25

One other point to add, whilst the share is solid fundamentally it will then be mute until the next trading update. If you hold your money is dead, so IF the interim is anything to go by traders will be moving on and the share is essentially a plain Jane. I will set a price tomorrow evening for a Limit buy on Thursday, the price will be cheeky, and I may then cancel it when I'm at work and can monitor it.

[stun12] 26/3/2024 16:23

Rong, it wouldn't be dead money. There is a record date the day before ex-div. If you owned them on that day, you get the dividend. You can sell on XD day and still be entitled to it. The only thing which is 'dead' about it is the amount of the divi itself. At 13p odd, unless you have 10s of thousands of these, it's not going to make a lot of difference.

[rongetsrich] 26/3/2024 15:46

Or how about sell, make a profit and then buy back when it drops by the amount of the dividend?This isn't rocket science, it's another way to make money, but not be sat on dead money til 8 May.

[spawny100] 26/3/2024 15:42

in my experience the case where it can make sense to sell before exdiv is if there is withholding tax to pay on the dividend. E.g DEC or TGA.

[kenmitch] 26/3/2024 15:33

tyroneshares.

Here’s the direct answer to your question.

1. The dividend amount is taken out of the share price first thing on ex dividend day. So if the dividend is 13.8p the share price will be marked down by that amount.

2. What happens after that on ex dividend day and days after that depends on the usual things like investors buying or selling.



3. So after that initial share price mark down on ex dividend day the share price could continue to fall if there’s more selling than buying, or rise straight away and sometimes make up and more, all the initial ex dividend mark down.

4. There is NO additional mark down 2 days later.

[pierre oreilly] 26/3/2024 15:31

1jat - yeah, agreed there may be some tax benefit of taking divis or capital gains. But, I'm not sure how many here are above any allowances for those, bearing in mind they've had plenty of time to get the bulk of their portfolio sheltered from tax. (Most need just one year to get all their portfolio into isas imv).

Tyrone - I don't see anything beyond the ordinary in today's drop, they go up and down most days. I think the price driver is institutional trades (and pis are irrelevant) and certainly some of those may be offloading some if their bonuses are paid on a tax year basis and, as you say, take the profit from the recent rise.. Churn is always good for the City, imv it's how they pay the million quid bonuses. Sell today, buy back in a couple of weeks, that works for the city, but stats ahow trading like that doesn't work for pis where 80% who try it lose their gambling pot. (The regulator orders derivative platform suppliers to inform potential new customers of the rate of success of their existing traders, and it's usually about 20% v 80% who lose. Fortunately advfn has all the 20% and none of the 80%.).

[tyroneshares] 26/3/2024 14:27

Thanks for the replies.I think today's pullback and if one again tomorrow might be because of profit taking due to the gradual recent rise and end of tax year. Thursdays drop obviously expected being xd.Might be worth adding if drops below 220p maybe.

[rongetsrich] 26/3/2024 14:18

How about you do it in an ISA/ SIPP? Where tax is not a consideration, CGT is not a consideration and you end up with more shares than you started with PLUS the dividend in your hand right now and not in May? Tricks and short cuts.

[rongetsrich] 26/3/2024 14:15

Scruff, if a £3.99 x 2 is a deal breaker fair enough. The 0.5 per cent stamp duty is a minor consideration, but then you would be a mug for not working all of this out before dealing.The point is, after tomorrow we are not sat til May to get that dividend, and whoever does it ends up with several hundred pounds to buy more shares.This is an easy trading stock, one that even a mug can trade, if they know what they are doing.Many ways to skin a cat, it's all profit.

[gbh2] 26/3/2024 14:09

When your trading fee is £3 it's no "mugs game" however if you like dead money most of the year round, then invest and forget :)

[1jat] 26/3/2024 13:49

It could work post tax… for GIA assets.
Keeping the divi and taxed at 40% vs capital gain (after costs) taxed at 20%.
As the share price can easily move by 20% of the divi on the day, it is a gamble.

But this does not work for ISAs or SIPPs which is where most PIs will be protecting their assets from the tax man. Here it is just a timing thing…the divi is money out of the market for 6-8 weeks and you might be better off vs costs by being in the market that is a short term trade

[scruff1] 26/3/2024 13:40

Everyone to their own but playing the divi is imo a mugs game - 2 sets of trading fees, the spread, the stamp duty and the possibility of losing out anyway if there is a quick return of the share price If you picked the stock because you thought it had potential then patience and confidence in your choice would seem a better option. Different thing if you think the divi is a bit of a decoy

[gbh2] 26/3/2024 11:59

Pierre, fwiw I've traded xd dates successfully for years, however if you don't get it how, best leave it alone.

PS This nowt to do with anything "rong" ID posts, because I've had that ID Filtered for ages.

[rongetsrich] 26/3/2024 11:43

Park it. Rong !!lol CWA dressed you down for nam calling, people can read for themselves.

[pierre oreilly] 26/3/2024 11:21

Just trying to see how you think there's money to be made over the divi dates. I thought discussions were the idea of these bbs?

To me, trading over xd dates is exactly the same as trading any other dates, since going xd is financially neutral (you get the divi but the price opens the divi amount less).

For anyone reading, rong is being disingenuous saying i 'misbehaved' on another thread .

[rongetsrich] 26/3/2024 11:13

Park it Pierre, I sense you're about to kick off and misbehave like you did on the LGEN board.