In the next quarter if the dividend is $0.25 (25 U.S. cents). Stock will drop to $9.75 due to x � dividend. But that is a know factor.
The stock should drop below $9.50. So in this quarter you suffer from drop more than yield.
If stock remains @ 10.00 and you get $1.00 dividend only then the stock is yielding 12.00% If stock continues to drop, we can�t equate 12% yield and drop in the price of stock as two independent variables.
How can I buy at $12.64 and lose more than yield, i.e. when price drops below 12.24.
Trend lines are working against you L.B. There appear to have been a few cases in which the stock dropped for a relatively short time, as you predict. But there are a LOT of factors working the other way.
A lot of these MBS REITs have only dropped for an hour or two after ex-div. or similar, lately.