Network photos
Expected dividends, especially cash dividends to buy stocks, is one of the popular investment trends in the stock market.
dividends are part of the after-tax profits allocated to shareholders by the company. The most common things on the market are cash dividends and stock dividends. Payment of
dividends is important to shareholders, especially cash dividends, as it shows that the company is still profitable.
Many value investors pursue the trend of earning cash dividends by investing in stocks, typically Benjamin Graham, the "father" of value investment theory and the consultant to billionaire Warren Buffett.
According to investment legend Benjamin Graham, cash dividends provide a fairly stable source of income, and can also help investors enjoy compound profits when interest rates plummet.
Therefore, there is a trend for investors in the market to wait for news of cash dividends to buy after the dividend right is closed and wait for the profit-taking day.
Securities experts believe that investors should not buy stocks 4-5 days before closing the dividends of shareholder lists, because this is the strongest selling time. After the deadline for the dividend shareholder list of
, the stock reference price will be lowered.
When the stock is notified to pay a cash dividend, the stock price will be lowered in its value ratio on the ex-dividend day, or more accurately, the trading day of the buyer's ex-dividend day. .
If the company pays stock dividends, the stock price must of course be adjusted downward. Since the same amount of dividends are allocated to more stocks, the value per share will drop. Not to mention waiting for the arrival of these stocks (1-2 months), the price may continue to fall.
Therefore, 4-5 days before closing the shareholder dividend list, investors can consider taking profits on the stock, holding cash, and then waiting for a buying opportunity during the downward period.
However, when deciding to invest in stocks, the most important factor is still the company's operating performance. If the company does a good job and continues to maintain a good development direction in the future, it can completely convince investors to hold it for a long time.
