Lot of public listed company on Philippines Stock Exchange regularly pays dividend, this could be stock or cash. Regular dividends are usually paid at a specific time of the year, short term traders are very aware of it. Sometimes, companies give special dividends but not regularly… it happens only when such a company experienced high profitability on that year.

To profit on this, the concept is simple. Buy shares of the company before the dividend declaration or after the declaration. Usually the share price would increase to the extent of the dividend ex-date, and short term traders sell their shares a day before the ex-date as the price already increased. To obtain the profit, make sure that the price increase must also cover the transaction cost from the broker and the remaining after deducting the capital is now the real profit. The other way also to play dividend is to sell it after the ex-date to just obtain the dividend then wait until Payment-Date, capital should be then transfer to other fast price moving company shares or other companies that newly posted also dividends. The cycle will continue to be gearing, since dividend play is usually a small amount only… but can be a good profiting system if well managed.

Below is the list of top ten good paying cash and stock shares dividends in PSE last year:

Take note that cash or stock dividends provide additional income to the company and also some sort of cushion of capital losses especially during bearish market condition.

Other example of cautious play can be seen at Petron Corp. (PCOR), which declared dividend lately at Php0.10 per share. We can’t expect a good play since the value is not enough to cover even the transaction cost.