WBC Thoughts and Assessment

WBC has triggered my VAPP target of 7%. Based on the uptrend, it's due to the announcement of WBC Dividends and its special dividend of .15. It's not a material impact since the .75 was expected, and .15 would only yield 1/2%. The market price uptrend by another 5% within a few weeks far surpasses the 1/2%. Instead of anticipating a 2.8% drop, we're anticipating a 3.3% drop due to its dividend distributions. Estimating price of 27.5, a 3.3% drop would be about 26.59 price. That's still out of our TPP and TAPP ranges, so it's a HOLD for us now. Either the price drops by another 4% closer to 25.5 and then we DCA Buy, or the price increases by another 2.6% and then we sell around the 27.25 price range. We have different lots, so we can realize our small parcel within JUN, or a big parcel in JUL and defer our realized gains for the following year. Both will be after the 45 days following the dividend stripping rules.

If we assess our current holdings of 11K, .90/27.5=3.3% x 1.428 = 4.67%. 11K x 4.67% = 513 in DFC for HY. We still have 2 more payments to go, so at DFC% of avg 4% HY, that's 4% x 2 = 8% FY. We'll need to target 7% MR to match our VAPP to realize its gain early for the FY, and then we can reallocate back to ING Offset until the next DCA Buy one month before the NOV ex-dividend date. However if we do this, our DCA Buys would instead be at 5.5K instead of 2.75K to set our APP lower.

If we calculate HY, there's a chance we can achieve the following: MAY DFC: 4.67% + JUL MRT 7% + JUL-OCT CS in MIR 6.79%/4 + NOV 4.67% = 4.67%+7%+1.7%+4.67%=18% in HY by DEC. Only one factor: Sell price in JUL. We'll recycle the funds from ING Offset for Buy in OCT to dividend capture the ex-dividend in NOV24 and MAY25 for the other HY.