Is it wise to hold your shates till ex-dividend (XD)?
Let us take an example. DBS has just gone XD on Monday 10th April 2023. At the close of trading before Monday, DBS was at 33.38. If you still have your DBS shares, you will get the 92-cent dividentd. Theoretically, DBS shares would be 33.38 less 0.92 i.e. 32.46 on Monday and it closed at 32.39 making it better if you had sold off before XD and buy on Monday at XD. Right now, Wednesday, DBS is trading at 32.21 making it even more atttactive to have sold your DBS before XD and buy now as it is much cheaper!
UOB, OCBC, Keppel Corp, Jardine C&C, City Dev, Capitaland Invest and Sembcorp Industries have ther XD dates soon. So from DBS experience, would you hold these shares till XD to get its announced dividend or sell off and buy back at XD price or likely lower like what DBS had turned out?
Do you due diligence and decide. Get the dividend and buy back when the share price fall way below dividend or sell off and buy back at much lower price XD? Your guess may be as good as mine! Good luck!
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I never think out of the box....mainly think to hold the counter XD to get dividend
but this is an good thought...
I know there are many people who like to "trade" SG dividend stocks. But I don't understand why. Firstly, the commissions are high. Secondly, you need to "risk" a lot of capital. I would rather accumulate dividend stocks and keep till the last day of my life. It will be a very decent passive income after retirement. If I want to trade, I will just trade US stocks or options. But of course, everyone is different. Good luck!