It would seem that there have been a few pluses and a few minuses and they almost exactly cancelled out - no real change.
Going forward - much the same.
Best Wishes
Paper Tiger
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It would seem that there have been a few pluses and a few minuses and they almost exactly cancelled out - no real change.
Going forward - much the same.
Best Wishes
Paper Tiger
But WHAT a yield !! 16/0.72 = 22.22 cps gross. Someone buying today could realistically add back the dividend they're receiving in short order and argue they're effectively investing at $2.19 - $0.08 = net price $2.11. 0.2222 / 2.11 = 10.53% gross plus they have the incredible honour of possibly meeting Jenny Shipley at the ASM in due course :D
Depends upon your perspective. FWIW when I'm buying shares after a profit announcement and within 6 weeks of a dividend ex date I run my yield analysis on the basis that the near term divvy is paid in such a short time frame I treat it as part repayment of the purchase price. This approach isn't strictly correct as I'm foregoing a few weeks interest in my call account at 3.25% but the way I figure this is that amount of interest foregone in my call account is so small I ignore it. I'm usually investing for a few years so look past the immediate divvy. Not claiming this is technically precisely correct, its just the way I do it :)
Market knows best! But I still find it interesting that MRP did better today than GNE.
I just saw the SP dip as an opportunity to increase my shareholding at what I believe is a good price prior to a very solid dividend payment.
FWIW my calculation is 0.08 / 2.20 over 2 months = 21.8% anualised after tax (almost).
Another option would be to buy after it goes ex-dividend and presuming SP drops by roughly the amount of the dividend, you now have an increased yield % for the next 20 or however long you hold years. If you are buying for dividend yield and drip buying over a long period of time then keeping your average buy in price as low as possible will enhance your return more dramatically over the longer period.
I prefer the additional safety of buying on a dip prior to stock going ex-dividend. 8cps imputed dividend is equivalent to 11cps price movement. So I can tolerate some further significant downwards sp movement without loosing sleep. Plus I want the shorter investment period for power company stocks with the upcoming Tiwai contract negotiations.
Despite some people being of the opinion that NZAS withdrawal will be limited to effecting MEL(CA), I strongly believe all power company shares will become collateral damage. I do not want any exposure to this risk. I will happily buy back in once a decision on this is announced to the market
GNE & MRP will come under some selling pressure once the holding period has expired for the bonus issue of shares to take effect - this happens on the 16th April and 11th May respectively.
Will be seriously looking at my options when this happens as I believe there is a lot of downside in electricity generation.