Author Topic: Shorting Dividends  (Read 2269 times)

okobrien

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Shorting Dividends
« on: August 25, 2016, 08:24:03 AM »
The clamor for yield has been interesting to watch this year as people seem to be making--what I would consider to be risky-- bets on "high" dividend stocks in hopes for 2% yield.  So, as companies' profits are stagnant or decreasing, their stock prices are up, up, up.  Anybody have the guts to call bs on it all and short some dividend stock?

jjandjab

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Re: Shorting Dividends
« Reply #1 on: August 25, 2016, 12:27:26 PM »
Nope. You consider chasing dividend stocks risky and then propose to do the riskiest bet in the market, going short? I'd bet on the side of the dividend stocks winning...

forummm

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Re: Shorting Dividends
« Reply #2 on: August 25, 2016, 12:44:38 PM »
BTW, if you short a dividend stock you have to pay the dividends to the owner (of the shares you borrowed) out of your pocket.

okobrien

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Re: Shorting Dividends
« Reply #3 on: August 25, 2016, 01:55:00 PM »
Nope. You consider chasing dividend stocks risky and then propose to do the riskiest bet in the market, going short? I'd bet on the side of the dividend stocks winning...

Oh no, I think going short is quite risky, I am just curious if anyone is doing it.

okobrien

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Re: Shorting Dividends
« Reply #4 on: August 25, 2016, 01:56:02 PM »
BTW, if you short a dividend stock you have to pay the dividends to the owner (of the shares you borrowed) out of your pocket.

I was curious if that was part of the deal...

MustacheAndaHalf

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Re: Shorting Dividends
« Reply #5 on: August 25, 2016, 02:39:06 PM »
... bets on "high" dividend stocks in hopes for 2% yield.
The S&P 500 has a dividend yield of 1.98% right now.  So 2% would be an average yield, not a high yield.

mrpercentage

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Re: Shorting Dividends
« Reply #6 on: August 25, 2016, 06:12:52 PM »
I yield close to 5% in my picked stocks. If you short me big I promise I would just buy more.

By the way, for the record, the vast majority of your money should be indexed into something like the S&P 500. I wouldn't short that either. Maybe short a no dividend healthcare stock because HRC is gonna give them some mean combos in the debates. She is hurting them with just tweets

okobrien

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Re: Shorting Dividends
« Reply #7 on: August 25, 2016, 07:19:25 PM »
I yield close to 5% in my picked stocks. If you short me big I promise I would just buy more.

By the way, for the record, the vast majority of your money should be indexed into something like the S&P 500. I wouldn't short that either. Maybe short a no dividend healthcare stock because HRC is gonna give them some mean combos in the debates. She is hurting them with just tweets

I guess I haven't been clear enough about this yet, I aint shorting shit.  I was hoping somebody else was planning on it and wanted to share their thoughts.  Although doing things differently isn't usually too popular around these parts of the forum, I always like to hear about people doing things outside the box.

And By the way, for the record, the vast majority of my money is invested in whiskey and blow.  Shoot holes in that plan, Stan!

mrpercentage

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Re: Shorting Dividends
« Reply #8 on: August 25, 2016, 07:51:17 PM »
I yield close to 5% in my picked stocks. If you short me big I promise I would just buy more.

By the way, for the record, the vast majority of your money should be indexed into something like the S&P 500. I wouldn't short that either. Maybe short a no dividend healthcare stock because HRC is gonna give them some mean combos in the debates. She is hurting them with just tweets

I guess I haven't been clear enough about this yet, I aint shorting shit.  I was hoping somebody else was planning on it and wanted to share their thoughts.  Although doing things differently isn't usually too popular around these parts of the forum, I always like to hear about people doing things outside the box.

And By the way, for the record, the vast majority of my money is invested in whiskey and blow.  Shoot holes in that plan, Stan!

😉👈🏻
I often get accused of misleading people and steering them away from the benefit of the index. Dividend index may go down but I think you would have to be a fool to short it. Maybe XLU fast after Janet says she is increasing rates. But you could short anything if that happens

okobrien

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Re: Shorting Dividends
« Reply #9 on: August 26, 2016, 06:44:45 AM »
I yield close to 5% in my picked stocks. If you short me big I promise I would just buy more.

By the way, for the record, the vast majority of your money should be indexed into something like the S&P 500. I wouldn't short that either. Maybe short a no dividend healthcare stock because HRC is gonna give them some mean combos in the debates. She is hurting them with just tweets

I guess I haven't been clear enough about this yet, I aint shorting shit.  I was hoping somebody else was planning on it and wanted to share their thoughts.  Although doing things differently isn't usually too popular around these parts of the forum, I always like to hear about people doing things outside the box.

And By the way, for the record, the vast majority of my money is invested in whiskey and blow.  Shoot holes in that plan, Stan!

😉👈🏻
I often get accused of misleading people and steering them away from the benefit of the index. Dividend index may go down but I think you would have to be a fool to short it. Maybe XLU fast after Janet says she is increasing rates. But you could short anything if that happens
Yea, that is true, you aren't a religious indexer.  I actually beleive indexing is the best move for me (based on my terrible history when I have gone with individual stocks)  I think I got defensive there because I have seen non indexers get jumped on so often in these threads, and I like to read about different ideas, even if I don't think they are right for me.