Thanks for watching everyone! If you like this challenge idea, then give this video a LIKE to support my channel! Also check out the next video in the challenge here: kzread.info/dash/bejne/eZd7j66RqrC6e5s.html

Jake risking his own money for our content. All the best Jake. Cant wait to see the conclusion!

@JakeBroe

3 жыл бұрын

I do it for the people's entertainment! haha

Whoa! This is exciting! Looking forward and good luck Jake!

@JakeBroe

3 жыл бұрын

Thanks Cyfer! Cheers!

Really waiting on it....thanks

@JakeBroe

3 жыл бұрын

You bet Jah! Cheers!

It is really nice see you trying to do new strategies.

@JakeBroe

3 жыл бұрын

Thanks David! I think it is interesting!

By the way, the options makers would price in the volatility from ex dividend date in the price of the option, so you would have to keep that in mind as well

@JakeBroe

3 жыл бұрын

yeah, they got to

How interesting! You’re brave, my friend! I wish you luck with this and I look forward to the outcome.

@JakeBroe

3 жыл бұрын

Thanks Matthew! I'll think I'll end up where I started ultimately, but we'll see!

Great analysis, you’re developing interesting strategies. Had no idea about repaying the dividend. Looking forward to your next insightful video.

@JakeBroe

3 жыл бұрын

Thanks georgia! I'll do a mid month update and a wrap up video first week in August!

Thank you for doing this experiment! I always curious if this strategy works and here it is. Would love to see a weekly update video on this one. Love your channel!

@JakeBroe

3 жыл бұрын

Thanks DC! I'll do a mid month update and then another update at the end of the month. Thanks for the support!

When you upload I click. Always learn something new. Good stuff as always!

@JakeBroe

3 жыл бұрын

Thanks Mark! Glad you are getting value from these videos!

Amazing idea. Looking forward to the results. Keep em coming Jake.

@JakeBroe

3 жыл бұрын

Thanks darcenex! Glad you like it!

Thanks Jake! Very curious to see how this works. Best of luck!

@JakeBroe

3 жыл бұрын

Thanks LAF! I appreciate the support!

Love these types of videos Jake, taking one for the team here lol

@JakeBroe

3 жыл бұрын

For you Jackson! I'll risk my money...

hope your method a myth buster the ex-dividend price drop notion. its fun to watch your investment grow and us entertaining through investment realty series.

@JakeBroe

3 жыл бұрын

Thanks Venkata! I'm glad you are watching my channel!

I am looking forward to see the outcome. I actually had the same idea myself and started with OLP and VLVLY since I own those stocks and I will make a bit of the money but wasn't sure if worth it. Your videos will certainly answer that question much better. Thank you!

@JakeBroe

3 жыл бұрын

Thanks Bojan! I will stick to it for a month and share the results!

Interesting plan, I thought about that before just to get some dividend but never really do it, good luck Jake :)

@JakeBroe

3 жыл бұрын

Thanks Bunny Z! I appreciate that!

I'm excited to see the future.

@JakeBroe

3 жыл бұрын

Me, too Rya! Cheers!

This should be very interesting Jake! Looking forward to see how it turns out. Good luck 👍

@JakeBroe

3 жыл бұрын

Thanks John! Results coming at the end of the month!

All the best champ 🥁🥁🥁🏆🏆

@JakeBroe

3 жыл бұрын

Thanks Ahmad!

Thanks, Jake!

@JakeBroe

3 жыл бұрын

You are welcome Kyoto!

@KyotoMelody

3 жыл бұрын

@@JakeBroe Happy 4th of July! I am actually enjoying firework at this moment! :)

Hey Jake, love your channel. Quick question: Everything you explain about how dividends work, does this apply to a dividend index fund like Vanguard's VHYAX? When dividends are paid out every quarter in VHYAX for example, does the share price drop like you explained about individual stocks?

Can't ask for a better explanation, thanks Jake.

@JakeBroe

3 жыл бұрын

You are very welcome Rachad! Cheers!

how can i know when to buy the ex dividend stock to perform your experiment? where is that information?

I am still amazed how Jake doesn’t have 200k subs. He is really good with his informative content! Great video, thanks!!!!!

@JakeBroe

3 жыл бұрын

Thanks! I am hoping I can hit 100,000 by this December. Anything above that is just extra in my opinion.

What if you buy an equal amount when it drops and sell both when it recovers?

Great video Jake 😁

@JakeBroe

3 жыл бұрын

Thanks IS! I appreciate that!

Very much looking forward to the results!

@JakeBroe

3 жыл бұрын

Hey Danno! I have an update video coming out today!

Good luck!!

@JakeBroe

3 жыл бұрын

Thanks Alan!

Read "Dividend Policy, Growth, and the Valuation of Shares" (Miller and Modigliani, 1961). Total returns stay the same (growth only vs growth + dividend) because required return does not change. You typically perform the same by just buying and selling a non-dividend paying the stock (homemade dividend). However, depending on how you will get taxed will make a difference. Generally speaking, after all friction costs, you better off by ignoring dividends when the only motivation is total returns. Your experiment might work in short term, but the research suggests no difference over many transactions.

Alternatively, you can also run the wheel on a dividend stock. Start the wheel with cash secured puts with the goal of holding the stock before the ex dividend date. Then, sell covered calls on the stock until they get called away while looking for another play. This way probably moves much slower and doesn't have that swing trading strategy you're trying but it could be useful if you're trying to hold the stock anyway with the added bonus of capturing the dividend. The incresed volatility around an ex dividend date might make for higher premiums too.

@JakeBroe

3 жыл бұрын

Hey Victor! Yep! For anyone running the wheel strategy, I always recommend they do it on dividend stocks. Solid advice!

Is it safe to play the people who are selling after payout? Perhaps buying puts after the payment date or buying calls after the declaration date? However, for AAPL, Looking at the history of dividends announcements and charts, there seems to be a drop in price after the dividend announcement.

Cool idea Jake, thanks for risking capital for our education. Look forward to watching.

@JakeBroe

3 жыл бұрын

Thanks Vaughns! Cheers!

Now this is a cool challenge. Love it!

@JakeBroe

3 жыл бұрын

Thanks LW! Should be a fun month!

@Yeah_Buddy_LIGHTWEIGHT

3 жыл бұрын

@@JakeBroe looking forward to it! Happy Independence Day!

is it advisable to buy the stocks 5 or 6 days before the ex-div date?

I have been watching for a few months and I really like this dividend capture series. I tried this a year or so ago and abandoned it for other strategies, but I was not as methodical as you are planning. I am very interested in the outcome. I agree with your assessment that it will likely not consistently work. Keep up the good work. BTW, a regular IRA can mitigate the tax problems (depending on our tax situation) as your gains will be taxed as regular income when you withdraw.

@JakeBroe

3 жыл бұрын

Thanks for watching Louis! Will post the results in August!

what if i want my stocks to stay for long term? do i qualify for the nex ex-dividend again? i mean for the next declaration?

Love your content Jake!!! I sure would have loved to see an options only trading challenge since you did so well on the last one, due to you very solid options strategy, I feel… keep it up. Love how authentic your channel is. One thing, what is with all of the flags you have and changing them per video? Keep it up.

@JakeBroe

3 жыл бұрын

Thanks Robert! We'll do more with trading options on my channel. But I needed to take a break this summer from tracking and researching stocks. Last 6 months was too much for me!

LOL I've had some success with almost this- except I used a dividend avoidance strategy. I bought after it dropped from those using the dividend capture strategy, then sold it back to them at a higher price later in the month. I made more than I would from the dividend payment of the respective stocks.

@JakeBroe

3 жыл бұрын

Solid! I am going to talk about this actually in my next update video a little more. Cheers Sean!

Fun challenge, cant wait to see the results.

@JakeBroe

3 жыл бұрын

Thanks Agkoh! Cheers!

Noooooo!!!! Bad idea, I do something similar at times I buy a week or 2 before dividend day and I sell the day before ex dividend makes more than the dividend.

@JakeBroe

3 жыл бұрын

That is probably true, haha. We'll try this way for a month and try something different next month!

haha i was just thinking about this strategy specifically for a stock with a decently high annually paid dividend... will probably be giving it a try. for science!

@JakeBroe

3 жыл бұрын

FOR SCIENCE!!

Awesome

@JakeBroe

3 жыл бұрын

Thanks Wasy!

I guess when you're playing with house money... lol this should be interesting to see the results

@JakeBroe

3 жыл бұрын

I agree gekko! We'll see how it turns out!

It's also known as dividend stripping. I've tried this too, albeit unsuccessfully.

@jasonnysacleomedes5084

3 жыл бұрын

Ouch! At least you tried and learned from it.

@JakeBroe

3 жыл бұрын

Let's see where this goes! Cheers Raymond!

Always wanted to know if i should do this😉

@JakeBroe

3 жыл бұрын

We'll find out together what this is like after a month!

Interesting strategy but like you said, not likely to be super lucrative. We’ll see, thanks Jake!

@JakeBroe

3 жыл бұрын

I think it's random. This month is basically a coin flip I think.

Have you looked at the fund IGA? Slightly over 8% div yield, but has a small mgmt fee.

@lolwtnick4362

3 жыл бұрын

why not do preferred shares? they pay up to 16%

@JakeBroe

3 жыл бұрын

Haven't looked in to it! Sounds interesting

I am doing this one for the first time, have been planning it for over a week for T (AT&T). I already bought the stock a few days ago with the idea (in reviewing its history) that there would be three green days ahead of the ex-dividend date of July 7th. It is up already about the amount that the $52 dividend capture (.52c each x 100) will produce. I believe from my analysis that this stock is going up to around $34 on its current trend it just started and so I am also doing covered calls on it. I anticipate it coming back to my price after the dividend capture and then proceeding up from there. Regardless, I am also buying another 100 shares at whatever price is on the 6th, so I will capture $104, and then I will hold it while doing covered calls anyway. "T" is a solid stock, so not worried about dips with it over the medium to long term outlook.

@craigchambers4183

3 жыл бұрын

T is also over %6 dividend profit annually. Did not see that on your July sheet, but it is on my charts. Current price is $29.25 as I type this.

@JakeBroe

3 жыл бұрын

Solid Craig! You sound like you have been putting a lot of thought in to this!

When you first brought up the spreadsheet, I thought that U. S. Steel (ticker X) was paying a dividend 5 times this month 🤣 Looking forward to your results 👍

@JakeBroe

3 жыл бұрын

That would be an amazing dividend stock for sure! haha

The stock market itself, like the NYSE, literally drops the quoted price of a stock equal to the amount of any dividend. So we don't actually need to rely on market forces to equalize the price of a stock after ex date!

@JakeBroe

3 жыл бұрын

This is true! I have an update video coming out today.

Jake do you think buying before ex dividend date and also selling atm covered calls at the same time a week out would be profitable?

@JakeBroe

2 жыл бұрын

Not really. I just don't think there is a way to game this with options premiums. 99% of trades are done with computer algorithms and I'm sure ex-dividend dates are programed in to prevent people from exploiting these dates.

Why do you prefer to buy a home over investing all your savings in stock market?

@JakeBroe

3 жыл бұрын

I don't? Not sure what you mean?

My prediction is you will lose value and owe a bunch of money in taxes.

@JakeBroe

3 жыл бұрын

Not a bad prediction honestly...

@JJ-nu8qi

3 жыл бұрын

I'm actually don't usually go for heavy dividends stocks just because in Tennessee you have to file state taxes if you go over 2500. It's just an extra pain for me. I'm interested if you come out ahead though

@nicks8459

3 жыл бұрын

Pretty sure you can't have it both ways JJ. He can lose a bunch of money, but would then not owe taxes. Or he can make money and have to pay his nominal tax rate. Good luck Jake. Here's to hoping you make a fortune. Yeah, you'll pay some of it in taxes but you'll still get to keep most of it🤙

@JJ-nu8qi

3 жыл бұрын

@@nicks8459 I agree now that I think about I'm interested in how he does.

Real time empirical data!

@JakeBroe

3 жыл бұрын

Cheers Ron!

I actually thought about and practiced this strategy a bit toward those high yield bond ETFs (like HYUP, HYLD), but clearly not at your scale (every possible trading day over a month with 20K+). It seems to me that for those high yield ETF the drop at or right after the dividend day is quite consistent, to a point that I felt it is not worthy ...

@JakeBroe

3 жыл бұрын

For sure! Everyone has this idea, which is something I have been thinking about for a while. Let's see how it goes!

Im waiting for the bearish options experiment

@JakeBroe

3 жыл бұрын

Yep! It's coming. I don't want to be buying any puts yet until late August.

Jake, question from a fellow AD service member: Do you still recommend the military setup of the CSR, schwab Platinum, Gold, USAA cashback for gas, BCP, and Citi DC? I am asking given the rumored schwab point devaluation and rollout of the city custom cash. Thanks!

@JakeBroe

3 жыл бұрын

It all depends how many credit cards you want to have! If you think 5/6 is more than enough, then those cards are still good. The Citi Custom Cash is great if you want to get that instead and use it as a dinning or grocery card forever.

I buy and hold for the long term 😎

@JakeBroe

3 жыл бұрын

Don't need to test that investing strategy! That's a proven winner!

oh boy this is gonna be entertaining XD ., also do you think i should join the air force can i contact you in twitter

@JakeBroe

3 жыл бұрын

Thanks jackson! You can message me on twitter if you like. I am always happy to help.

I came for the aliens I stayed for the stock chat.

@JakeBroe

3 жыл бұрын

Haha, great to have you with us Dave!

What if you had a ton of money to invest with this strategy? You could buy 100 shares and instead of immediately get out the next day, place a two to three week covered call with a strike price that you bought it at or just a little higher. Just a thought.

@JakeBroe

3 жыл бұрын

Yep! Some people do this!

You're probably already thinking this, but it would be great at the end to do a breakdown of your earnings/losses vs if you had put the same amount in an ETF. (seems like something you could even just do retroactively)

@toddharry7238

3 жыл бұрын

Ohh... wait.. I guess I should have just waited until watching the whole video before commenting...

@JakeBroe

3 жыл бұрын

Haha, I got you covered Todd! That will be in my analysis for sure!

Not a bad idea but not for the beginner dividend trader.

Listen I do not know why people don’t do what I am doing!!!!!! I basically have about $22,000 and I trade and sale dividend stocks for one month basically four different stocks currently I am bringing home out of those Four stocks approximately $1900 a month It’s impossible to trade & sale every day I did it choosing no more than four stocks there are some that I lost maybe $100 on there are some that I kept for probably a week and a half and they did go back up lastly there’s a gas dividend stock that I purchased I held onto it longer than I wanted to because it was losing money eventually of course I got the dividend but I also made a $370 profit because The stock itself eventually went back up🤷🏾‍♂️

SOS! - Jake, can you pls make a video on Dividends. How can Honda have a Trailing Annual Dividend Yield of 350.54% and a Forward Annual Dividend Rate of 1.02; what all this means? Honda has a $13+ trillion revenue, but we are trying to understand the Dividends issue the way only YOU can explain it... By the way, according to Yahoo in re Honda : Book Value Per Share (mrq) 5,260.06; Revenue (ttm) 13.17T Revenue Per Share (ttm) 7,627.84 7/9/21 Stock price at close $32.04 and a healthy Cash Flow, but a little HI debt. Forward Annual Dividend Rate 1.02 Forward Annual Dividend Yield 3.14% Trailing Annual Dividend Rate 110.00 Trailing Annual Dividend Yield 350.54% 5 Year Average Dividend Yield 3.21 Payout Ratio 28.71% Dividend Date Jun 10, 2019 Ex-Dividend Date Mar 29, 2021 Last Split Factor 4:1 Many thanks & cheers, T.

@JakeBroe

3 жыл бұрын

Not sure what you mean by a dividend rate of 350.54%. Google says it is 3.17%

Jake is going in on the strategy knowing that he will mostly lose money just for the experiment and content for the viewers. That takes courage! Thanks Jake. Will be interesting to see the results!

@JakeBroe

3 жыл бұрын

Thanks Rohit!

Best of luck, This is turning to a casino-level play. Only wishing the player gets an upper hand and not the house.

@JakeBroe

3 жыл бұрын

Thanks Fin! I'm feeling lucky this month, haha

I am about 3 mins into this video. Predicting you'll be down about 7k.

I predict you “break even” if you factor-in your you-tube revenue for the month!

@JakeBroe

3 жыл бұрын

Haha, that won't be factored in officially, but you might be right.

Update?

@JakeBroe

2 жыл бұрын

Coming at the end of the month!

😂 lol ...doesnt work?? On a 27k portfolio last month (june) I made $1300 implementing the dividend capture strategy

@JakeBroe

3 жыл бұрын

Yeah... but the S&P 500 was almost up 4% last month. You were jumping in and out of stocks that were going up anyways and made about 4%...

First! 😂

@JakeBroe

3 жыл бұрын

You got it Elita! Cheers!