Special dividend, is it good ? 🧐
We called it special dividend if the company declared a high/huge amount of dividend, it's a good amount that tempted us to buy thestocks, however be aware my friends, after the ex-date, the stock price may drop badly and never go up again [Surprised] so actually once the company declared, the stock price already climb so high.
As a new comer in 2021 i did not know the stock price will reduce after the ex-date [Facepalm] i happily bought$JAPFA LTD.(UD2.SI)$at $0.90 to get dividend $0.10 until now stock price remain around $0.60, if it dip to 0.50 i will buy again to DCA down. I like the company business but I understand if more interest in the stock then the trend will go up.
Then $SUNPOWER GROUP LTD.(5GD.SI)$also declared good dividend USD 0.1006 but learned from Japfa, i sold it at profit before ex-date, true enough till today the stock price have not raised. Although price is dip, i have not bought back because i didn't loss money on it.
Then this year 2022, fantastic dividend by $ZIM Integrated Shipping Services Ltd.(ZIM)$was declared USD17, this co book value wasso good, i still fall into the trap and buy at the high of USD 88, i still keep Zim because its FA is very good and of course buy when its dip to get back what i loss [Spurting] now Zim around $50, if dip to $40 i will buy again.
Don't fall into the trap my friends, invest wisely 💕
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great article