Quote:
Originally Posted by Spoon
While true, if you were looking at stock XYZ at $20 today with a 5% yield and again a year from now. If the share price didn't move, are you really going to think that you loss out on a 5% move (from the yield)? Likely not. And that's the beauty of dividends.
|
SiRv was talking about cashing in on the ex-dividend dates and selling right after. Dividends are good if you plan to hold the unit for longer periods of time. However, if you plan to sell right after the ex-dividend date, the share price will have dropped already to reflect the paid out dividend so you just lost money on commissions for 2 trades.