Saturday, December 14, 2019

IVZ trade and Thoughts

        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. 

  I purchased 2 shares of IVZ @ $18.00 on 11/06 after it appeared on my dividend calendar that I explained in a 3 part series started here .

       The dividend of $0.31 a share represents 1.72% based on my purchase price $18/$0.31.

     I "captured the dividend" on 11/08 and was paid the dividend on 12/02. Capture the dividend means you bought the stock before the"dividend ex-date" and held it until the"ex-date". You "capture the dividend" even if you sell the stock on its "ex-date" (but not before). Your "captured dividend will be paid on"pay-date", usually a few days to a month (each company is different) after "ex-date".

    I was paid the dividend on 12/02 ($0.31 a share times 2 shares = $0.62). I sold the stock on 12/13 for $18.18 a share.

     $36.36 proceeds from sale
     $  0.62 dividend captured and collected
     $36.98 total
    -$36.00 purchase price
      $ 0.98 total profit = 2.72% ROI (return on investment)

    The stock had a high of $18.33 on 12/13 but closed at $17.62. Would I trade IVZ again, absolutely. Holding the stock for about 5 weeks still returned on goal on 2% ROI monthly.  It will pay a dividend again in February but I may trade it again before that just to make a profit from the stock price movement, knowing a dividend is in the future. 

     Keeping a "trade book" (I will explain mine tomorrow) will help you understand and indemnify trades that should be considered the future and those that just did not play out ( we all have those from time to time).

Disclaimer, I am not a professional.

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