Vaughan Spa
Toronto Escorts

Sears Canada?

Rockslinger

Banned
Apr 24, 2005
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Cruzer22

New member
May 18, 2009
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Yes but even with that you are still ahead of the game. Say you buy 1000 shares @ $20 ($20000), get the $3.5 dividend ($3500) and sell at $16.5 ($16500). Let's say fees are $100, so you are really down to $19900, you have to pay tax on the 3500 dividend but get to claim a captial loss of 3500, so using the loss on other income you would still be up.
 

Rockslinger

Banned
Apr 24, 2005
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Say you buy 1000 shares @ $20 ($20000), get the $3.5 dividend ($3500) and sell at $16.5 ($16500). Let's say fees are $100, so you are really down to $19900,
Ok, let's follow the money.

You pay $20,000 plus $100.
You receive $3,500 plus $16,500.

Economically, you are down $100. You pay tax on the $3,500 dividend and you get tax relief (or do you?) on a $3,500 capital loss.
 

danmand

Well-known member
Nov 28, 2003
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There is a small additional problem, that you have overlooked. If you bought Sears today, the trade would settle on the 23rd,
i.e. you would not own the stock on the 22nd, and you would not receive a dividend.

PS: SCC declined $2.80 today.
 

Rockslinger

Banned
Apr 24, 2005
32,783
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There is a small additional problem, that you have overlooked. If you bought Sears today, the trade would settle on the 23rd,
i.e. you would not own the stock on the 22nd, and you would not receive a dividend.

PS: SCC declined $2.80 today.
Well, at least the price of the stock is cheaper by $2.80. Hee, hee, hee.
 

Cruzer22

New member
May 18, 2009
458
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There is a small additional problem, that you have overlooked. If you bought Sears today, the trade would settle on the 23rd,
i.e. you would not own the stock on the 22nd, and you would not receive a dividend.

PS: SCC declined $2.80 today.
Ok, so you are saying that I could only buy it on Friday Sept. 17 to collect the dividend? That makes sense if that's the case because it dropped almost the dividend amount on Monday and at closing on Friday there was 500K shares traded!
 

Cruzer22

New member
May 18, 2009
458
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Buy it now for $3.50 less. You save $3.50 per share. Aren't you glad you waited? Hee, hee, hee.
I don't know, they just removed $350M (about 100M shares) of equity through this dividend and have applied for a total of $1.2B in loans so it's probably going to keep dropping.

I was only interested in it because of the article that stated share holder of record on Sept. 22. So I thought if I bought today I would be a share holder tomorrow and then I could sell and not be affected by this drop.
 
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