Today ended with a great profit using this strategy. It was the second best day (best day - 5/16/17 +$223.98) for the three weeks into this strategy. Today, I had 4 stocks to sell and 2 to buy (sorry, I forgot to mention them in the post from yesterday but more on that later).
Here's what happened today:
1) Sold BEP (Brookfield Renewable Partners) for $31.58. The stock loss was -$109.51 and the captured dividend was $109.51. I sold it for exactly the amount of the dividend - $.47. Broke even at $0.00.
2) Sold NEWT (Newtek Business Services) for $17.15. The stock loss was -$170.00 and the captured dividend was $170.00. I sold it for exactly the amount of the dividend - $.40. Broke even at $0.00.
I can't believe that I did that once but to do it twice in one day was amazing.
3) Sold BPY (Brookfield Property Partners) for $22.35. The stock loss was -$47.18 and the captured dividend was +$101.11. This resulted in a gain of +$53.93.
4) Sold TPVG (Triplepoint Venture Growth) for $13.42. The stock loss was -$190.05 and the captured dividend was $195.05. This resulted in a gain of +$5.43.
Both of the following stocks are dividend capture plays for next Tuesday due to the Memorial Holiday:
5) Bought EFC (Ellington Financial) - 444 shares @ $16.87. The dividend to be captured is $199.80. The stock ended the day at $16.97 so I'm up +$44.40 when the market opens on Tuesday.
6) Bought NYLD (NRG Yield) - 416 shares @ $18.00. The dividend to be captured is $112.32. After I bought this stock a few minutes into the day and after a brief decline, it continued to climb and the pricing stayed stable on the way up. Rule #17 says "If stock "pops" up more than the dividend value when purchased, sell stock and don't wait for ex-date and don't collect dividend". So, that's what I did. I followed the stock closely through the day and when it got close to the dividend capture amount (+$.27), I set a sell order for $18.27. That worked out as a nice $112.32 profit for a few hours of diligence.
Here's the chart for today for NYLD. You can see that it was a nice move up today after an initial move down.
I didn't sell after it went down because it's a set up for next Tuesday and I needed to stay in it for the captured dividend.
I really prefer not to own one of these dividend capture stocks for 3+ days (over the weekend plus a holiday) but I had no choice if I wanted the dividends. The captured dividends totals over $300 so I weighed the risk and went for it.
As I mentioned in the opening paragraph, this was the best day so far. I banked $171.68 and had two stocks break-even. All-in-all, it was a weird and wonderful day!
As of day 16, I have a gain of $1,214.60 for a $75.91/day average. Still below my $100/day average goal but I'm happy for a 3 week total.
Of course, Monday is a holiday so no trading but in addition to selling EFC, I'll be trying to add CHL (China Mobile) and DTEGY (Deutsche Telekom). These two stocks will add about $357.00 of captured dividends.
Until then, happy trading!
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P.S.S. If you missed the blog post about my 20 rules for dividend capture strategy, here's a link to it.
P.S.S.S. If you missed my blog post yesterday, I gave the link to all my portfolio trades, past, present and future. Here it is again.