Diary of a Dividend Diva: Playing the Specials
With dividends coming fast and furious, it looks like a great holiday for income-oriented investors. Here are a few thoughts regarding the current dividend-fest.
Remember that when you play special dividends, focus on the total return on the trade, not just the cash payment. The larger the special, the steeper the drop in the stock when it goes ex-dividend. Expect to book a capital loss along with receiving the dividend, so the difference is what really matters. A couple of specials I played recently illustrate how you should shape your thinking....452 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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