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As in the spreadsheet Mike Higgs (aka Yielder) used to provide (and update regularly) years ago on Financial Wisdom Forum. I used to have a copy but believe I purged it cleaning up my Documents folder years ago.
 

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The price adjustment is real, but then you must not forget that the market reaction will balance back up the price. Therefore, at the end, you haven't really "lost" anything.
If one believes this is true, then simply buy before the ex dividend. Watch the price drop on the ex, but then (you claim) it gets boosted back up to where it was before, meaning the dividend is free money.

The trading strategy should therefore be clear. You simply need to get your hands on as much leverage as possible. Before every ex dividend, you buy millions of $ of the stock. Pocket the dividend, and then the price magically recovers, and you sell. The huge borrowing is only for a day or two, so it basically costs you nothing to borrow.

Do you believe that would work?
 

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How does the historical performance of the top 6 dividend payers on the TSX 60 compare with the top 6 stocks that pay no dividend? Based on for example, total return over 10 years?
(I would have chosen 10, but doubt there are 10 non-dividend payers on the TSX60)
 

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If one believes this is true, then simply buy before the ex dividend. Watch the price drop on the ex, but then (you claim) it gets boosted back up to where it was before, meaning the dividend is free money.

The trading strategy should therefore be clear. You simply need to get your hands on as much leverage as possible. Before every ex dividend, you buy millions of $ of the stock. Pocket the dividend, and then the price magically recovers, and you sell. The huge borrowing is only for a day or two, so it basically costs you nothing to borrow.

Do you believe that would work?
The market is intelligent. This would not work because if everybody did that, then we would see an increase in share price before the ex-div due to people buying, then the small decrease due to paying the dividend and then another decrease due to people selling their shares because they wanted the supposedly free dividend.

It's either way:

1) Say people doesn't buy before ex-div. Price is stable at 100$, then after paying the dividend it gets to 99$, then investors buy that deal and it gets back to 100$.

2) Say people buy before ex-div for the supposedly "free div". Price is stable at 100$. Before ex-div, price increases to 101$ from people wanting to buy for the "free div", then after paying the dividend, it gets to 100$. Then people sell at 100$ since they now got their "free div". People bought at 101$, got 1$ div, then sold at 100$. Final balance 0$ to them.
 

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Not many 10 year old companies don't pay dividends...they go tits up or initiate a dividend. That is what companies private & public do.
 

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Not many 10 year old companies don't pay dividends...they go tits up or initiate a dividend. That is what companies private & public do.
Really? I haven't checked TSX lately, but a few years ago, there were about 68 stocks on S&P500 that pay no dividends. And many of those have been around for a lot more than 10yrs and are household names. Google, Amazon, Facebook, etc

In Canada, far fewer non-dividend payers for those that eschew dividend stocks.
 

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How does the historical performance of the top 6 dividend payers on the TSX 60 compare with the top 6 stocks that pay no dividend? Based on for example, total return over 10 years?
(I would have chosen 10, but doubt there are 10 non-dividend payers on the TSX60)
Don't think that is actually relevant. The TSX60 is mainly mature companies without much major growth ahead of them, SHOP and such excepted of course. It is ultimately a matter of degree. CN Rail and ATD.B are low dividend payers because they can re-invest capital with a decent ROE/ROC. I like and would own both even if they had 0% yield. Stocks may well have succumbed to paying at least a tiny dividend because it broadens the universe for many indices/ETFs that require dividend payers to be included in the index/ETF.

Dividends are a result of good stock picking, not THE driver of stock picking. Folks who filter by decreasing yield are most likely missing the boat. Sort by ROE/ROC instead.
 

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Just trying to show how pointless this thread is. If you invest in Canada, you will be investing in dividend payers regardless. If you dont want the dividends, drip or accumulate them and buy more stock. If you need the income, use it. If that is not sufficient, sell some stock. And as has been pointed out, good dividend stocks tend to maintain value, so less susceptible to volatility in overall markets.

How are y'all spending this warm summer?
 
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