- The asset goes up in price
- The asset price stays the same
- The asset price drops a relatively small amount
One of the catches (and there are always at least one), is that the investor gives up some upside.
SPY will go ex-dividend Friday, March 15th, 2019 with a dividend I’m estimating to be $1.15 /share (based on historical patterns.) SPY’s distribution payout will be on April 30th, 2019—yes the SPDR folks take their time delivering the dividend. I’m estimating Vanguard’s VOO, one of the other two big S&P 500 ETFs, will go ex-dividend on the 13th of March with a dividend of $1.09/ share. iShares’ IVV, will go ex-dividend on the 20th of March with a dividend of $1.08/ share.
2019 Ex-Dividend and Pay Date information from SPDR referenced in this post. 2019 Ex-Dividend Dates 1-Feb 1-Mar 1-Apr 1-May 3-June 1-July 1-Aug 3-Sept 1-Oct 1-Nov 2-Dec 20-Dec 30-Dec (Potential Excise Distribution) Pay / Distribution Dates 7-Feb 7-Mar 5-Apr 7-May 7-June 8-July 7-Aug 9-Sept 7-Oct 7-Nov 6-Dec 27-Dec 6-Jan-2020 (Potential Excise Distribution) BABS SPDR Nuveen Barclays Build America Bond ETF (BABS) BIL SPDR Barclays 1-3 Month …
Bond or stock dividends are interesting because they are market discontinuities. Unlike surprising earnings reports, revised analyst ratings, or lawsuits dividends are usually predictable in both amount and timing. You can capture a dividend by just buying and holding onto a investment that offers them, but then you are exposed to the price movements of that instrument.
Big moves usually don’t happen in a day, be patient Don’t fight the market Consider not jumping in or out all at once—no matter which way the market goes there will be something good to be said about it (e.g., at least I got half out…) Regardless of the market trend the chances of an up day tomorrow are always fifty-fifty (post) Don’t buy at …