Tuesday, July 5, 2011

Desperately Seeking Yield Through Equities: Part 9 - Dividend Anticipation

via SeekingAlpha.com: Home Page by Philip Mause on 7/5/11

Philip Mause submits:
At the outset, I should warn readers that the strategy described in this piece is somewhat risky and controversial and does not provide immediate yield in the form of dividends. I am not referring to the often discussed "dividend capture" strategy (buying a stock shortly before the ex-dividend date). I will be discussing purchasing shares of companies that are not paying dividends or that are paying relatively low dividends in the expectation that dividends will be resumed or increased in a reasonably short time frame and that the stock will shoot up upon that event. In terms of waiting for the resumption or increase in dividends, I use the term "anticipation" in honor of Carly Simon's great 70s song describing waiting for a date with Cat Stevens and used by Heinz (HNZ) in some great catsup commercials. This is what it has come to for some of us retirees -


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