lowtrade

[lowtrade]

Anyone ever play dividend capture? Well in Q2 I've been trying to located positive chart pattern plays, which include a possible dividend capture also. Semi successful to date, and still search for them and found this one, during next weeks trades homework today.

AMID crashed but the divvy stands. Giving a huge buying op to do a divvy capture play. If bought on Thurs. @ $11.50, divvy would have been 3.6%. on Fri @ $6.60 it's 6.25%.

This hole thing is strange. Meaning with the 27 July PR which cause the 42% crash, (probably from 60% institutional ownership stake) selling out. I can't understand why they would give up 41 cents a share dividend, days before the distribution, no matter how bad the news was.

At any rate the news was bad for long term holder. But still maintained their dividend level for Q2. Expect Q3 will see a negative change. But this is a few day play only.

If one owns AMID on Aug 2nd and sells Aug 3, they will receive the announced dividend of $.4125 per share or 6.25% for buying and holding for 2 days. @ The present stock price of $6.60.

There is a chance if the price Aug 3rd is 6.25% lower then the price one buys in, this would be a wash. Or loss if larger then 6.25% fall.

Personally I tend to believe crashes are on emotion; and usually regain some when emotions reside. So I'm expecting to swing trade possible gains on price increase, from entry price. More then price retrace to continue. We have 3 days to see what's up with that.

AMID dividend for Q2
Amount $0.4125
Declare Date 2018-07-27
Ex-Dividend Date ? 2018-08-03
Record Date 2018-08-06
Pay Date 2018-08-14
Payout Type Regular

A little on what dividend capture is;

Dividend Capture Definitions

Here are definitions that you need to know.

Declaration date: the day that a firm announces its next dividend. Such announcements are almost always made via a press release.

Owner of Record date: the date that you must be registered as a shareholder to collect the next dividend. You become the owner of record on the third business day after you purchased the shares.

Ex-dividend date: the first day that new buyers are not entitled to collect the next dividend. The ex-dividend date is two business days before the "owner of record" date (business days are days when New York City banks are open, not stock market days). In the case of very large dividends (at least 25% of the share price), to collect the dividend, you cannot sell until at least one market day after the payment date.

Payment date: the day that the dividend should be deposited into your brokerage account.

Thus, in most instances, you could purchase shares on the day prior to the ex-dividend date, sell on the ex-dividend date, and still collect the dividend on the payment date.