QUOTE(chyaw @ Jul 10 2009, 09:41 AM)
I don't think buy a counter for short term dividend is a good idea...
I buy Sealink for long term. Dividend is a plus.
if you are short term buyer and buy dividend counter exactly before EX date then you are not making a wise decision.
because after the EX date, the share price will be adjusted.
let's say now sealink is 0.715, after issuing 0.04 dividend, the share price will be adjusted to 0.715 - 0.04 = 0.675 the day after EX date.
and usually after EX date even the price has been adjusted to a lower price, the share price will
drop significantly due to low buying volume, everybody loses interest to buy the share as EX date just over (a lot of misconception about dividend here).
so what i am trying to say is you earn nothing by buying a share right before EX date except letting your money stay floated at the company for a few weeks then get your dividend check and you suffer the risk that the share price will drop even after the price being adjusted after EX date too.