zubs
Well-known member
CIM is a REIT stock that sells at $18.90/share and pays a dividend of $2.00/share (10.96% dividend)
The ex-dividend date is 06.27.2019 for a dividend that pays on 07.30.2019
So you have to buy the stock before or on 06.27.2019 to get the dividend.
Would a good strategy be to keep your money in the 2.1% money market and buy CIM right before the ex-div date, and then sell after it pays the dividend to put it right back into the 2.1% money market, and do that 4 times a year?
Example with $100,000:
$100,000/$18.90 = 5,291 shares
5,291 shares X 0.50 = $2,645.50
After dividend payout, sell and put $100,000 into the 2.1% money market for 2 months before you have to stick it back into CIM
So you get about $175 in interest.
So after 1 year:
CIM dividend X 4 = $10,582
Interest from moneymarket X 4 = $700/
Total: $11,282
Even better is if you can use a bunch of REIT's where you just circle the money around getting the high dividends.
CIM to AGNC to ARR
Find ex dividend dates for high dividend stocks as the strategy.
Please poke holes as I am looking for a reason this doesn't work.
The ex-dividend date is 06.27.2019 for a dividend that pays on 07.30.2019
So you have to buy the stock before or on 06.27.2019 to get the dividend.
Would a good strategy be to keep your money in the 2.1% money market and buy CIM right before the ex-div date, and then sell after it pays the dividend to put it right back into the 2.1% money market, and do that 4 times a year?
Example with $100,000:
$100,000/$18.90 = 5,291 shares
5,291 shares X 0.50 = $2,645.50
After dividend payout, sell and put $100,000 into the 2.1% money market for 2 months before you have to stick it back into CIM
So you get about $175 in interest.
So after 1 year:
CIM dividend X 4 = $10,582
Interest from moneymarket X 4 = $700/
Total: $11,282
Even better is if you can use a bunch of REIT's where you just circle the money around getting the high dividends.
CIM to AGNC to ARR
Find ex dividend dates for high dividend stocks as the strategy.
Please poke holes as I am looking for a reason this doesn't work.