Q: Good morning,
Thinking of selling BCE for a capital loss, and replacing with FTS. Hold FTS until ex-dividend date of May 16th, and then buy back BCE in time for their June ex-dividend date.
Reasonable strategy if no immediate near term price catalysts - good or bad - for either BCE/FTS?
Thinking of selling BCE for a capital loss, and replacing with FTS. Hold FTS until ex-dividend date of May 16th, and then buy back BCE in time for their June ex-dividend date.
Reasonable strategy if no immediate near term price catalysts - good or bad - for either BCE/FTS?
5i Research Answer:
We have no issue with such a plan if it can be executed with low commission, a tax benefit and minimal bid/ask slippage. We see no catalysts really in the short term that would not impact both (interest rate movements would be the main catalyst). Keep in mind FTS will likely decline by a similar amount of its dividend on its ex-dividend date.