I called up a 2 year chart on yahoo charts and pluged in the dividends for RSO. I noticed 7 times of the 8 times it showes the dividends that the price started falling about mid day the day before the ex date and fell for a day or two at least. It seems the drop most of the time is at least $ .50 and in some cases more.
Would it not make more sense to sell the day before the ex-date and wait a day or two and re-buy lower and leverge a lot more shares that way, in stead of the .25 cent dividend reinvestment.
Good comments everyone, thank you.
I have some of my shares in an IRA so i do not believe the taxes would be an issue in that account.
As far as those that trade im not sure how diference it makes to traders
It's certainly something I considered, but I can't, I'd get slaughtered for taxes. I could buy new shares after the drop, planning on selling them next quarter, but in the meantime the whole market could tumble, and I'd prefer to have dry powder. It's a dilemma, and an opportunity lost each quarter it seems.
I agree, buying and selling on the dips while holding a core position is very effective. However, it takes good judgement based on years of experience. And, of course, you get experience from years of bad judgement.