Q1 2017 strategy

Today the company which underwent the acquisition of the Australian company had declared a special dividend of $5/share. I am holding to 10 lots of this company and I am going to use the dividend income of about $50,000 to acquire about 1 lot of another company M. The money should come in around end February.

I have a stock which is a trust and it should issue an estimated dividend of $0.18/share. I own a total of 380 lots which will give me about dividend income of about $68,400. The money should come end of March. This will allow me to acquire 2 lots of company M. 

Company M is giving out a special dividend of $2.20/share this year and the final dividend should be about $0.8/share. I currently hold 7 lots of this company M. With the additional dividend income, I will increase my holding to 10 lots. With 10 lots, I will be entitled to additional $30,000. By end May, the first company will issue $2/share for final dividend. This will generate $20,000. I will use the total dividend of $50,000 and some additional cash in May to boost my holdings in company M by an additional 2 lots to 12 lots.

Total dividend gain from this strategy will be 168,400.

24/2/2017
Company M price has gone up. This will affect my “ideal” strategy.