Ann: Dividend/Distribution - ENN, page-4

The average % retracement over past 4 years after going ex dividend in December has been 12%. The 10% to 15% range (average 12%) retracement has been completed by the 3rd week of February on all of the past 4 years. Assuming the share closes at $2.13 on 27th December then on past form the share should bottom out circa $1.85 area by about the 21st February.

A plan could be to enter around $1.85, say buy 10,000 shares = $18,500 then collect the June dividend, say 0.094c = $940 then sell in September at $2.40 as September has proved to be the high point past couple of years.

Return on investment of $18,500 over a 7 month period would be: -

* Unfranked dividend on 10,000 shares.........$940
* Capital gain excluding brokerage................$5,500
* Total return..................................................$6,440 or a % gain of 34.81% on original outlay of $18,500.

When investing I like to draw up a plan and then act on the plan. Past history is a useful guide but not always accurate. I plan to win not plan to fail. I doubt any of the big four banks will come close to aforesaid projections. Another option might be to buy some CSL shares, take a 2% divvy and hope it doubles in value once again. Not impossible but probably a fairy tale. The other option is to suss out some mid cap stocks paying 4-5% yield that have growth potential. Research Research Research. Buy Low - Sell High