I confess to selling more than half my holding at $3.98 just a day or so before it went ex-div. So from my point of view the question is not 'why did it drop so much ex-div' but 'why did it go up so much before'. From July it increased in price by $1, going from around 8%+ yield to 6%+ in the process. I know the outlook was improving (a bit of a rarity in the current economy), but although reasonably solid TWD is not yet blue chip.
At around $3 I might top back up, but for now I'll hold and look for higher yield elsewhere (SWM 11%+ but at risk?, HVST 11%+ and solid?, or even an ALF/WMK at around 7%+ with market hedging). IMO TWD needs to offer at least 8% to be considered, so a price above $3 is only attractive if the dividend starts growing due to increased profitability.
TWD Price at posting:
$3.41 Sentiment: Hold Disclosure: Held
