Obtain a dividend yield of up to 14% by sharing these 7 investments
In the coming days, several high-yield stocks are set to go ex-dividend, providing an opportunity for income-focused investors. These stocks include Intesa, Eni, Sitio Royalties, Gladstone Capital, Vodafone, Dynex Capital, and Global Ship Lease.
When a stock goes ex-dividend, the share price typically drops by an amount roughly equivalent to the dividend paid. This is because the value of the dividend is being paid out to shareholders, and the stock is now trading without the right to the most recently announced dividend. For high-yield stocks, where dividends represent a significant portion of the share price, this drop can be more pronounced.
The ex-dividend date often leads to increased trading activity. Some investors may attempt to buy just before the ex-dividend date and sell shortly after, aiming to capture the dividend while hoping for a price rebound. This can contribute to trading volume and volatility around the event.
Studies show that certain stocks, especially those with a strong history of rebounding after ex-dividend, may experience abnormal returns in the days before the ex-date as investors position themselves. However, the magnitude of any post-dividend rebound depends on broader market conditions and the specific stock’s characteristics.
Dynex Capital, a REIT that invests leveraged in secured mortgage loans, has a high payout due to its business model. Its ex-dividend date is set for 15.11.2024, offering a dividend yield of 14.5%.
Global Ship Lease, another high-yielding stock, offers a dividend yield of 7.3%. Its ex-dividend date is yet to be announced.
It's important to note that only those who hold the stocks on their respective ex-dates will be entitled to the payout.
For those seeking interesting dividend stocks, the BÖRSE ONLINE Global Dividend Stars Index could be a useful resource. This index identifies high-yielding stocks that have demonstrated consistent dividend payments and strong financial health.
In conclusion, the ex-dividend date for high-yield stocks is associated with a price drop, increased trading activity, and possible short-term volatility. The extent of the initial drop, any rebound, and long-term price support depend on the dividend amount, investor strategies, and broader market conditions. As always, it's crucial for investors to do their due diligence and consider their individual investment goals and risk tolerance when making decisions.
[1] Investopedia. (2021). Ex-Dividend Date. [online] Available at: https://www.investopedia.com/terms/e/ex-dividend.asp [2] Investopedia. (2021). Dividend Yield. [online] Available at: https://www.investopedia.com/terms/d/dividendyield.asp [3] Investopedia. (2021). Dividend Capture. [online] Available at: https://www.investopedia.com/terms/d/dividendcapture.asp [4] Investopedia. (2021). Dividend Reinvestment Plan (DRIP). [online] Available at: https://www.investopedia.com/terms/d/dividendreinvestmentplan.asp
- Personal-finance investors may find it beneficial to closely watch the ex-dividend dates of high-yield stocks like Dynex Capital and Global Ship Lease, given their substantial dividend yields, as missing these dates could mean losing the opportunity to receive the dividend.
- For those looking to invest in personal-finance, focusing on high-yield stocks with a strong history of consistent dividend payments, such as those found in the BÖRSE ONLINE Global Dividend Stars Index, can be a strategic approach to earning income from their investments.
