#dividendcapture

Buying KO on PEP Ex-Dividend...

I recently did a casual survey of Coke and Pepsi historical data. I have a hypothesis that is a twist on cointegrated pairs. The hypothesis asserts:

Coke and Pepsi have movement around dividend time

Maybe, a lot of institutional and retail money moves from KO to PEP and back around the dividend cycle

The magnitude of movement might be greater than the dividend as a percent of share price

Buy PEP on KO ex-Dividend day, and vice versa

PEP superimposed roughly over KO time series.

DivFades that Sold Today

KO sold via a fire-and-forget limit order. I liked ARCC so much that I bought blocks of it in 2 accounts, 6 days ago. Late in the day, I noticed that ARCC had gapped-up earlier, and I did the math and adjusted my targets to take profits.

DateIn Tick Name Cost Price P/L %Yr DateOut Held 6/11ARCCAres Property$17.21$17.282.56%156%6/176 6/11ARCCAres Property$17.22$17.292.21%134.17%6/176 6/11KOCoca Cola$40.94$41.020.79%48.28%6/176

Fades in One Day or Less

Rite Aid took a day to do the dead-cat-bounce. TNA sold in under 15 minutes. Wish I had held onto it longer, as it peaked at $78.56, about 4% up.

DateIn Tick Name Cost Price P/L %Yr DateOut Held 6/17TNADirexion Daily Small Cap Bull 3X Shares$75.48$77.803.06%1117%6/171 6/17TNADirexion Daily Small Cap Bull 3X Shares$75.48$76.130.85%309%6/171 6/16RADRite Aid$7.07$7.191.61%588%6/171 6/16RADRite Aid$7.07$7.211.88%685%6/161

Boston Scientific Gapped Down

Sold half of today's BSX position to cover commissions. Other half, keeping overnight with price target as shown.

DateIn Tick Name Cost Price P/L %Yr DateOut Held 6/17BSXBoston Scientific$12.54$12.610.12%42.23%6/171 6/17BSXBoston Scientific$12.54$12.83

New Positions Held Overnight

Besides BSX, I'm holding onto some UVXY that dropped after I bought it. It peaked at $34.32 after the purchase.

Targeting $4, but waiting until after ex-Dividend date. This is my hottest buy for the day.

Portugal Telecom (PT) is trading at $3.82, which I selected as my entry position. Today or Monday, you can buy it before the ex-Dividend date of 5/27. An investment of $10,000 would capture $361.74. Additionally, " PT seems valued at a discount with a PE value of 7.625, one of the lowest in the Diversified Telecommunication Services industry." (TD Ameritrade / Thomson Reuters)

I bought the thinly-traded REIT ORC for $12.90. Turned around and offered for sale at $13.08. Predict that it will not sell today, and I will scoop up 18 cents per share of dividends tomorrow. This one may take some time to sell off, as Avg Vol (10-day) is only 184.7K. Cannot call this one a Fade, as it was already up for the day.

ORC

I was waiting for a dividend, but the share price upside was too good. On a humorous note, my friend Mike put ACAT in his "Sarah Palin" portfolio.

ACAT

Bought on dip at $140.18, waited for dividend, sold at $140.49. Would that I could do so every day. :)

I bought Cliffs Natural Resources (CLF) at $16.03, sold at $16.20 one day later, having captured the dividend.

Cliffs Natural Resources (CLF)