Q: Retired, dividend-income investor. Long, long term holder of BCE in my wife's cash account. Sold it in mid-Nov, captured a $12k cap loss, and plan to buy it back next week....prior to the ex-dividend date.
I am ok buying it at the roughly $38 level, even if it floats around that level for the short to medium term. I understand that there might even be some further downside risk. I plan to buy around 1400 shares, either in one shot or maybe 2-3 tranches.
Your opinion on which makes more sense in this case? Multiple purchases is the more conservative way to go, but one shot gets the full dividend back (and more) to where we were a month ago. The BCE board has said they would not touch the dividend for now....although their credibility has taken a hit lately. We are ok with "some" volatility. It's almost a "flip a coin" decision.
Thanks for your help...Steve
I am ok buying it at the roughly $38 level, even if it floats around that level for the short to medium term. I understand that there might even be some further downside risk. I plan to buy around 1400 shares, either in one shot or maybe 2-3 tranches.
Your opinion on which makes more sense in this case? Multiple purchases is the more conservative way to go, but one shot gets the full dividend back (and more) to where we were a month ago. The BCE board has said they would not touch the dividend for now....although their credibility has taken a hit lately. We are ok with "some" volatility. It's almost a "flip a coin" decision.
Thanks for your help...Steve
5i Research Answer:
Generally, when executing a tax loss/re-buy strategy, we find it better to re-buy all at once. The goal is to get a tax benefit and replace a position, typically, and not get perfect pricing. The tax benefit is significant enough to allow for some less-than-perfect pricing, and of course one gets the dividend on more shares with this strategy.