Another Quarterly Dividend From JNJ

This is a Post from the Symbol Surfing Blog from Mon, Aug 27, 2018.

Today was the ex-dividend date (ex-date) today for JNJ.

I will receive the cash dividend of $0.90 per share in my account automatically on the payment date or (pay date) of Tue, Sep 11, 2018.

The other 2 of the 4 "dividend dates" are the declaration date and the record date.

If you are interested, check out JNJ's dividend history.

That's why Johnson & Johnson is one of the few S&P 500 Dividend Aristocrats.

Many dividend-paying stocks pay dividends on a "quarterly basis".

Some dividend-paying stocks pay dividends on a "monthly basis".

My opinion is that the monthly dividend is more of a marketing strategy than anything else.

Another dividend-related strategy is "dividend capturing".

The article below explains it better than I can.

In my experience, on the ex-date, it is not unusual for the stock to drop by the amount of the cash dividend.

It paid out $0.90 cents in the form of a dividend.

Today the stock price dropped by -$1.03.

That makes sense, right?

A few years ago, I wrote a script that backtested a few hundred ex-dates on blue chips stocks.

I was hoping to find the holy grail.

I tracked the stock price the day before the ex-dividend date through a few days after.

It was actually a waste of time.

Some stocks went up, some stocks went down and others had a small change in price.

What I found out is that there seems to be zero correlation between the ex-date and the stock price movement.

On this trade I started on Mon, May 21, 2018, I am up about 9% plus the 2 quarterly dividends.

According to the chart, the stock price could easily hit $140 or higher if the stock continues this rally.

Let me know in the comments section!

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Mon, Aug 27, 2018 JNJ @ $134.92