Anyone here use Dividend Max?

[Deleted User]

Title says it all really.

I have had a look at the site and can see some interesting aspects, but would prefer to hear from those who have used it!

Any replies much appreciated!

Cheers.

WR

jimjames

Can you give link and more info? Title doesn't really give a lot away for me!

[Deleted User]

jimjames wrote: »

Can you give link and more info? Title doesn't really give a lot away for me!

Link below -

http://www.dividendmax.co.uk

(;) althought it strikes me that if you had to ask for a link/info, you are maybe unlikely to have used it!)

It seems to be a site that hunts down companies that have declared a dividend with time still left to buy before the ex-dividend date, so allowing you to buy the shares, sell after the ex-d date and take the dividend - fabby doo.

What I was hoping to obtain was the experience of others - given that you'd also have to factor in not only the dealing costs but also any fall in share price after the ex-d date. Maybe not so fabby doo!

As outlined in you signature lines, if it was easy and relatively predictable, everyone would be doing it.......:D

Cheers.

WR

IronWolf

You won't make money doing that, market makers aren't stupid you know

[Deleted User]

IronWolf wrote: »

........market makers aren't stupid you know

Really? No, surely not!

Have a look at the title of the post, then try and work out what kind of information I am looking for.

Thank you for your time....... :whistle:

WR

PenguinJim

Wild_Rover wrote: »

It seems to be a site that hunts down companies that have declared a dividend with time still left to buy before the ex-dividend date, so allowing you to buy the shares, sell after the ex-d date and take the dividend - fabby doo.

What I was hoping to obtain was the experience of others - given that you'd also have to factor in not only the dealing costs but also any fall in share price after the ex-d date. Maybe not so fabby doo!

Part of that "fall in share price" is exactly equal to the announced dividend value. All else being even, you'd be out of pocket for two dealing costs. The share price would have risen or fallen regardless of the dividend. You may as well have picked growth shares at random.

Kudos for the idea behind that website, though. A lot of people could fall for this!

[Deleted User]

PenguinJim wrote: »

Part of that "fall in share price" is exactly equal to the announced dividend value. All else being even, you'd be out of pocket for two dealing costs. The share price would have risen or fallen regardless of the dividend. You may as well have picked growth shares at random.

Kudos for the idea behind that website, though. A lot of people could fall for this!

That's why I was asking! I was looking to see if there was something I had missed, but if there is an advantage to using such a site, I haven't yet worked it out. I had wondered if there was a correlation/causation between share values that don't fall by at least the dividend value when the next and projected dividends are higher than expected, or if that rarely/never happened, if you see what I mean.

Also a helpful discussion on a site like this (not the "it'll never work" sort of response - IW take note?) might prevent someone diving in and losing money. It was why I asked the question the way I did - have users found something not obvious to the rest of us?

WR

sorcerer

don't really get it, because I could do all of this myself and not pay them a penny. Why pay them?

PenguinJim

Wild_Rover wrote: »

It was why I asked the question the way I did - have users found something not obvious to the rest of us?

Nope.

The website owner is simply making money from ad revenue (unless they actually charge for the "service" too? ).

Reaper

Wild_Rover wrote: »

It seems to be a site that hunts down companies that have declared a dividend with time still left to buy before the ex-dividend date, so allowing you to buy the shares, sell after the ex-d date and take the dividend - fabby doo.

To be fair to the site having had a quick look that is not what it is about. It is telling you which companies pay high dividends, it doesn't suggest your strategy.

As people have said you would normally expect the share price to fall by the amount of the dividend.

However it is not always quite that simple. Some people perform a "dividend dodge". Imagine you are a higher rate tax payer but have unused capital gains allowance. You could sell your shares just before the dividend is paid and re-buy them [STRIKE]immediately afterwards[/STRIKE] [EDIT]30 days later at the lower price.

I have also wondered if the market is as sensible as it is meant to be. My feeling (and I keep meaning to do the analysis to see if this is true) is that the share price does not rise in a linear fashion between one dividend payment and the next, even if everything else is equal. My feeling is the main rises occur about 10 - 14 days before hand. If true in theory there is a small money making opportunity there to buy 2 weeks before and sell just before the dividend is paid. My theory is people who want to sell near the dividend date delay until the date is reached causing a short term supply/demand imbalance. However it is only a theory and not backed up by facts yet, though I would be interested to hear if others have noticed it.

Anyway back to the site - you should be a bit wary of buying shares with very high dividends as quite often they are high because the share price is falling as the market expects falling profits and dividend cuts.

[Deleted User]

.... I'm not saying that the sole purpose of the site is to "churn" shares for dividend - one of the pages says -

"The best way to beat inflation is a mixture of good dividend-paying shares. But unless you're checking the whole market, you'll miss some great yields.

Finding the projected dividend yield of every share in the market would take months. That's why we developed the DividendMax tools. All the hard work's been done for you and presented with simple tools to identify the best yields, whatever your risk appetite or investment timeframe."

I was looking to see if anyone here used them, and if so, what they thought - are they better or worse than any other site, or do you have a similar chance using a pin and the shares pages. They also claim to search about 800 shares in UK/Europe/North America, but I don't know how much use folk make of the Europe/NA ones.

The site claims that today's top yield is 12.8% which is a reasonable return in anyone's book, but that was why I was looking for responses from folk who used it!

Still, as there have been no replies from anyone who claims to use it, I think that's quite informative in itself as, right or wrong, I think some folk around here may be quite savvy.........:cool:

WR