happy2trade

A Dividend Payout

Rating: 2.00 not yet rated(3 votes)    Vote:

You are logged in as | Logout

SNH is a REIT. As a Real Estate Investment Trust it invests in Senior Housing. This is a stock I have pesonally owned since 2002. When the housing woes caused mortgage companies and REITs to fall in price, so did SNH. I thought that since it is involved in senior housing units, it should not have trouble with lost revenue due to mortgage failures. It's price had come down from $26/share. I bought 4630 shares for this contest on 8-23 for $20.50/share.
SNH never lowered it's dividend. In fact SNH has increased it's dividend by a penny. So, I am sure I'm correct about there being no large loss in revenue, even with a credit crunch going on.
I expect SNH should be worth $23-$25/share. At $23/share there is a 6% dividend.
When it's dividend (hold to get paid date) came near I bought an additional 4450 shares at $22.43. You see I am employing a scheme, that I would buy a stock just before the (hold to get paid dividend date) arrives. Then I would unload it after the date has passed. I will then use the cash to buy another stock just before it's (hold to get paid) date. This worked with Pfizer earlier in this contest. That is why I went ahead and bought the additional shares at the higher price. I also bought HRP (12,520shares@$9.60) on 9-7, for this purpose.
(Hold to get paid) dates have passed for both SNH and HRP. I put them both up for sale (10-26) with a limit price, good till canceled. The limit is to insure I get what I paid for them plus trade costs. Yesterday (10-31) SNH had reached the limit price I needed ($22.60). I will let all my SNH be sold and take the profits from the first purchase, also. I am looking forward to using the cash to purchase another stock paying dividends soon. That stock would be PFE again. It worked at the beginning of the contest. May lightning strike twice.
It turns out I was only able to unload 5,020 shares of the 9,080 I owned, at the price I wanted, yesterday. The selling mechanism seems slow. It took hours to get 5,020 shares sold. Today the stock has fallen and so did PFE. I went ahead and purchased PFE with the cash from the SNH I was able to sell. I will hold the remainder till the price again rises to near $23.
I do reflect on, if SNH would go back to $20.50/share, I may prefer to have bought SNH at that price, as opposed to the dividend I will receive from PFE.