SHF

[boing]

If I buy shf share installments now and I manage to sell it on Monday and the only drop in the share price was the dividend, would i be able to make a profit due to the fact that a full dividend gets paid?

[saash]

And can we take shorts over Astral over-night when the divi gets paid. Thereby earning the divi on the holding of the share/instalment, while profiting from the short as well?

[DST]

Come on guys! If I buy a quart of Hansa, then drink it over the weekend, can I get all my money back on Monday. No, because the beer is gone - so all I will get is the fair price for the empty. Its as simple as that.

[saash]

Yeah, but can I fill it with a substitute and feed it to one of my mates as a beer.

[boing]

Just so that I know I understand this correctly. Assume SHF is R20 and the share installment is R10. I buy a 1000 SI's at R10. The divi is 50c and I receive R500. At the same time all my SI's will drop from R10 to R9-50? (All other things being equal)

[SimonPB]

correct, all things being equal.

[boing]

Thanks. But does this next sentence make sense? Can SI's be a long term investment strategy (especially with rollovers) because the dividend yield as a % of capital employed is so much better than investing in ordinary shares.

[SimonPB]

ya they can (spose it depends on long term defination), but in short with the roll over feature you have one entry and can then hold pretty much forever (albeit I hate that word) and as you say higher div yield and some gearing. Risks are; crash/bear market is going to hurt more due to gearing (will you have the courage to hang on?), issuer does not issue a new instalment when one expires (not very likely, but possible).