Share
1,382 Posts.
lightbulb Created with Sketch. 34
clock Created with Sketch.
30/11/23
19:32
Share
Originally posted by MrBlackstock:
↑
Hello, Sorry if this seems a really basic concept, I have tried researching the topic but mostly I come up with people trying to sell me books and/or software/subscriptions. So, lets say I have $10,000 and buy shares in a company before the ex-dividend date, then after a week sell those shares and buy shares in another company before it's ex-dividend date, then wait a week and buy shares in a company before it's ex-dividend date... So in theory I have purchased $10K of shares in 3 companies before their ex-dividend dates, so I am then eligible for dividends from 3 companies... if I plan it well and select good companies, thats around $$7500 worth of dividends.. The question is: Although this seems potentially a good way to get cash flowing, perhaps a good strategy, what are the downsides? Will I be hit with a huge tax bill from such payments? (lets say all the dividends are 100% franked) Is this a safer way to short term trade? Is this how big funds get cash without endangering their portfolio? Thanks, Gareth
Expand
need to hold for 90 days to get tax credit.price will drop when it goes ex div.you not getting $7500 return on $10000.give it ago and use as a learner.