Replies to post #106533 on Zeev's Turnips Patch-No Politics (ZEEV)

[Babylon]

Wow, I didn't know that. Thanks for the explanation. So a short seller in a 5% yielding stock that goes principly nowhere for a year (share price that is), actually goes against him to the tune of 5% for the same period (assuming no change in yield of course).

[seminole]

In theory, the stock price drops an equal amount to respond to the pay out.

[Babylon]

Edit: I see Yahoo! quoting its yield at 1.83 (I thought it was much higher)..

Zeev, wouldn't buying that exact allocations on all of the DIA components separately, and shorting the ETF (DIA) effectively capture any existing yield within it risk free? A lot of work, but would it work?