Investing 102

[GregWeld]

Originally Posted by 96z28ss

Obviously not a big deal to you but that would mean an extra $86 for me.

Newbie question here. If the dividend is reinvested do I still pay a brokerage fee for buying that 1 stock? so would it be better to save a years worth up then buy more.

Remember that $86 is FOUR TIMES PER YEAR....and grows each quarter as you buy more shares with the reinvested dividend. It's like a snowball on a downhill slope... after a while it will take off on it's own!

Oh --- can't not post and poke you in the eye at the same time.... my Annaly (NLY) dividend this quarter was $13,750. I added 10,000 shares to the name (now 35,000 shares) so next quarter it'll be even bigger.

[96z28ss]

I have been wondering is a stock split the same as a ex-dividend date.
You have to own the stock before a certain date?

Reason I ask was I have been looking at DGAS and they announced a split.
I was reading this article and it makes it sound like people that owned the stock before April 17th get the split. Is this a differnent type of stock split?

"The Board of Directors of Delta Natural Gas Company, Inc. (NASDAQ: DGAS - News), at its meeting on February 17, 2012, declared a two-for-one stock split of the Corporation’s issued and outstanding common stock for shareholders of record as of April 17, 2012. In its Order dated March 8, 2012, the Kentucky Public Service Commission approved the two-for-one stock split. The additional shares to be issued in the stock split are expected to be distributed, and the stock split completed, on May 1, 2012.

As a result of the two-for-one stock split, for every one share of Delta Natural Gas Company, Inc. common stock owned by a shareholder as of the close of business on April 17, 2012, the shareholder will on May 1, 2012 own two shares of Delta Natural Gas Company, Inc. common stock. Delta Natural Gas Company, Inc. is expected to commence trading on the NASDAQ Global Market on a post-split basis at the opening of the market on May 2, 2012.

The Company currently has 3,407,550 shares of common stock outstanding. After the stock split, the current number of shares of common stock outstanding will increase to 6,815,100 shares.

For additional information and a list of frequently asked questions (FAQs) related to the two-for-one stock split, please refer to Delta Natural Gas Company’s website at www.deltagas.com.

Glenn R. Jennings, Chairman of the Board, President and Chief Executive Officer of Delta Natural Gas Company, Inc., stated, “We would like to thank all shareholders for their continued support and trust in Delta Natural Gas Company, Inc.”

[96z28ss]

I own a small position in CHKR, and its dragging me down. was thinking of dumping it and getting into DGAS

[BC69]

Just an aside - there is NO quantitative historical proof that stock splits actual help or result in a stock boost. As an M&A advisor we had a deck that we showed management teams all the time, 15 pages of information, historical and quant based analysis - the summary was always the same "It won't help or hurt, companies just do it for optics sometimes".

It really should not have any impact on your decision at all. And I know optically you think a cheaper per share cost would mean getting more shares and thus more return, but in reality share count doesnt matter.

[GregWeld]

Originally Posted by 96z28ss

I own a small position in CHKR, and its dragging me down. was thinking of dumping it and getting into DGAS

I would not do that.... you haven't owned it long enough - and you bought it for the dividend.

[GregWeld]

Originally Posted by 96z28ss

I have been wondering is a stock split the same as a ex-dividend date.
You have to own the stock before a certain date?

Regardless of when you bought the shares --- they will split. So if you owned them the day before the split - let's say you owned 100 on May 1st -- and May 2nd was the split date - when you check your account on May 2nd you will have more shares at less price per share.... They'll take care of everything for you....

[WSSix]

sweet! I own some Coke. Fun times ahead it seems.

[dhutton]

This article seems to echo what Greg has been saying about dividend investing:

http://seekingalpha.com/article/5417...ce=marketwatch

Don

[GregWeld]

Originally Posted by dhutton

This article seems to echo what Greg has been saying about dividend investing:

http://seekingalpha.com/article/5417...ce=marketwatch

Don

EVERYONE NEEDS TO READ THAT ARTICLE.


Thanks Don for posting the link!

[RECOVERY ROOM]

Good read, Thanks for posting