Friday, October 25, 2019

Anatomy of my HP trade

         This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start. 

      HP has a dividend ex-date 11/07 and will pay $0.71. As a general rule the stock price will increase in anticipation of the dividend payout.

    As you can see I bought for $38.40 and sold for $39.22 = $0.82 profit. $0.82 is more that the dividend. $0.82 on a $38.40 investment =  2.13% ROI (Return on Investment).

    The green shows HP down about 2% at the time I bought the stock. 
    The blue shows:
Support = $36.65 (a level where it does not like to go lower)
Resistance = $64.54 (a level where it does not like to go higher)

     I nice wide range and the stock price is toward the support WITH a $0.71 dividend on the horizon. 

     When buying a dividend stock, you always have the dividend payout while you wait for the price to recover should the price drop lower that your purchase price.

Disclaimer, I am not a professional. 

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