Well this is the rough calculation I use to work out whether it paid to buy shares in FMG last Friday to qualify for Sep dividend dividend by buying on the day to participate in the DRP.
$20.85 SP close on the 3rd of Sept
$2.11 divi x 1.215% = $2.56 Which is half the franking credit used as a offset against your tax liabilities depending on your tax bracket
$20.85 - 2.56 = $18.29
The DRP price needs to come down to at least $18.29 to have made participating in the DRP worthwhile and holding FMG shares as of last Friday. Even after the DRP is calculated its anyone's guess if a lower price than the DRP will present itself between now and the next dividend next year. I dont like to gamble so I try to avoid trying to time the market and look at the big picture. I dont begrudge those that jump in and out of the stock and if it paid to be out of the stock prior to going ex dividend so be it.
FMG Price at posting:
$19.02 Sentiment: Buy Disclosure: Held
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