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Re: tradingfunds post# 65598

Saturday, 11/24/2012 2:10:27 PM

Saturday, November 24, 2012 2:10:27 PM

Post# of 167964
I think it will be huge when SRGE delivers a 20 cent dividend. In my experience, investors will trade a stock from between 3 to 5% of the price-to-dividend ratio right before the ex-dividend date. To investors, it is very profitable to claim even a 3% dividend compared to having their money in savings with a small 1% interest payment, if that, under the current rates. Once the ex-dividend date passes, the stock typically drops back to a certain range from a sell-off as people sell off some and wait for the next dividend payment. If we predict that the stock would trade in the range for a 10% dividend payout with the 20 cents per share, this would put the price per share at $2.00. I think we could see prices much higher than this depending on earnings, asset valuations, and future dividend payout rates.