Seeking Alpha
  • Ocean Man
    Just bought LYB. Almost bought it at 36.50 on Monday, but waited for a dip. Got it at 34.10, 7% off. Pays a $4.50 special div next week.
    11/18/11
    Reply (7)
    • 1980XLS: Stock will have to go down at least that much then. More of a tax consideration than anything else at this point
      11/18/11
    • Tristan R. Brown: Just curious, but how do you plan to profit from that? Hold until the price recovers?
      11/18/11
    • 1980XLS: You can profit by harvesting capital loss against your other gains, while enjoying dividend at dfferent tax rate.
      11/18/11
    • Ocean Man: Yes, it's not a day trade. 1) I think it will run up towards its ex-div date next week. 2) I think it will recover after the 4.50 comes out.
      11/18/11
    • Ocean Man: EVOL is a better pick for 1980's tax play. $2 special div on a $7 stock (30%), ex-div in December, paid in January.
      11/18/11
    • Ocean Man: See, that gets you different tax rates and different tax years! Reduce and defer!
      11/18/11
    • 1980XLS: Use caution. Sometimes "Special Divis" get treated as Return on Capital for tax purposes. Must do your dd
      11/18/11