I’ve always wondered if you can improve your Snowball by dividend washing, where you buy a share just before it’s xd date and sell just after.

With most shares the price is marked down by the dividend or more but sometimes it’s not.

The market could dump on u if you before too early before the xd date.

You are liable to lose some capital on the transaction, although if you are lucky, you could earn the dividend and make a capital gain. The aim of the SNOWBALL is to increase the yearly income buy buying shares and re-investing the dividends, whilst retaining the capital and slowly increasing the seed capital invested. As the intention is never to kill the golden goose by selling any golden eggs, it’s not the primary aim of the SNOWBALL

I have sold £200 of TRIG, after allowing for costs at break even, as I needed the funds to buy 1k of GCP, ahead of their xd date this week.

Dealing costs of buying 1320 shares in GCP, including the spread £15.28.

The SNOWBALL has 5k of shares in GCP, so I intend to use this position to do some dividend washing.

The parameters is too restrict the loss of capital to £500 and to re-invest the dividends back into the SNOWBALL. A by product of any dividend washing it makes it easier to achieve this year’s fcast.

If you now jump forward ten years, if the earned dividends are £500 and re-invested at 7%, the income will be 1k per year for the rest of your Snowball, against the loss of capital and the income from any capital loss

The biggest danger to the plan is if you buy a clunker, so the plan is not too hold the new position for very long. The amount for dividend washing may be increased to 10k, subject to the outcome of the first few trades.

The earned dividend for GCP will be £118.00

Only a concept at this stage, as more pondering needs to happen.