$SIA (C6L.SG)$ see chatgpt calculation whehter to sell the s...
$SIA(C6L.SG$ see chatgpt calculation whehter to sell the stock now to gain capital gain or wait for dividend of 0.38 to get total gain===>Let's break down the potential gains from selling now versus waiting for the dividend, based on your purchase price of $6.74 per share and holding 42,000 shares.
### Selling Now
- **Current Stock Price**: $6.95
- **Purchase Price**: $6.74
- **Number of Shares**: 42,000
**Capital Gain Calculation**:
\[ \text{Capital Gain per Share} = \text{Current Stock Price} - \text{Purchase Price} \]
\[ \text{Capital Gain per Share} = 6.95 - 6.74 = 0.21 \]
\[ \text{Total Capital Gain} = \text{Capital Gain per Share} \times \text{Number of Shares} \]
\[ \text{Total Capital Gain} = 0.21 \times 42,000 = 8,820 \]
If you sell now, you will gain $8,820 in capital gains.
### Waiting for the Dividend
- **Dividend per Share**: $0.38
- **Number of Shares**: 42,000
**Dividend Calculation**:
\[ \text{Total Dividend} = \text{Dividend per Share} \times \text{Number of Shares} \]
\[ \text{Total Dividend} = 0.38 \times 42,000 = 15,960 \]
**Assumed Post-Dividend Stock Price**: $6.57 (assuming the stock price drops by the dividend amount of $0.38)
\[ \text{Post-Dividend Stock Value} = \text{Post-Dividend Stock Price} \times \text{Number of Shares} \]
\[ \text{Post-Dividend Stock Value} = 6.57 \times 42,000 = 275,940 \]
**Total Value if Waiting for Dividend**:
\[ \text{Total Value} = \text{Post-Dividend Stock Value} + \text{Total Dividend} \]
\[ \text{Total Value} = 275,940 + 15,960 = 291,900 \]
### Comparing Both Scenarios
- **Selling Now**:
- Total Sale Proceeds: $6.95 \times 42,000 = $291,900
- Capital Gain: $8,820
- **Waiting for Dividend**:
- Total Value: $291,900
- Includes Dividend: $15,960
In both scenarios, the total value remains the same at $291,900. However, if you sell now, your gain is purely from capital appreciation, amounting to $8,820. If you wait, the total value of your holdings includes both capital gain and the dividend, summing to $291,900.
### Conclusion
Given that the total value is the same, your decision might depend on:
- **Immediate Need for Funds**: If you need the funds immediately, selling now makes sense.
- **Market Conditions**: If you believe the stock price might decline further or not recover after the dividend payout, selling now could be safer.
- **Tax Considerations**: Depending on your tax situation, capital gains might be taxed differently than dividends.
Evaluate these factors based on your financial goals and risk tolerance. If in doubt, consulting with a financial advisor could help make a more informed decision.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Jasmine06 : Should I sell now as well?
103509899OP : yes u can but u will lose the dividend 0.38 coming on August 21/08/2024 . but for me i will keep bcos my dividend is more that the capital gain now. So i will listen to Chatgpt's advice