UA-300188601-1 The Dividend Girl: Be ready for Sprott Inc. (SII) special dividend of 60 cents

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Tuesday, January 18, 2011

Be ready for Sprott Inc. (SII) special dividend of 60 cents

This is just so hilarious in a certain way, my little trading mistake. It's really me. But it's a mistake I did without knowing. Investing in stock is not as easy as it's seem. It's full of things you need to know. This is what went wrong (but you can always refer yourself to my previous post and don't forget to read the comments)...

Back in January 10, 2011, Sprott Inc. (SII) announced a special dividend of 60 cents that will be paid to shareholders at the close of business of January 19, 2011.

A dividend of 60 cents is quite something. This is actually HUGE! I already own 520 stocks of Sprott Inc. (SII). It took me a little while to make my move, and maybe too long. Anyhow, on January 17, I decide to invest in 500 other stocks of Sprott Inc. (SII), for a total of 1 020 stocks of Sprott Inc. (SII).

I did my purchase in a rush, but in my mind, I didn't have any doubt about what I was going to do or what was going to happen lol. I wanted to earn an extra 300$ from Sprott Inc. (SII) from the special dividend. That's sit that's all! But it didn't go as expected. With my limited knowledge, little did I know about the 3 business closing day rule! But I learn it from TD Waterhouse and also from Sprott Investor Relations to who I gave a quick call earlier today. 3 business rules? What's the 3 business closing day rule? I screw up badly, but I learn. It could sound strange, but I really didn't knwo about the 3 business rules.

And now, I am kind of "stuck" with an extra 500 stocks of Sprott Inc. (SII) that were never really wanted. Because all I ever wanted was the extra cash and the extra stocks...

There's a lot to know about the stock market. Derek Foster cover a lot in his books, but there's much more to know. But I'll keep you post among the way! While having an extra 500 stocks of Sprott Inc. (SII) in my portfolio, belive it or not, I am now exceeding 60 000$ in debt, and it's look like I am only missing around 5 000$ before hitting my first 150 000$. I know, nothing to be too much proud about, but I am who I am, the Dividend Girl right?

Another problem: my dividend DRIP in my non registered Canadian margin broker account

I just have another problem at this exact time and I just wonder what's going to happen! Remember, in December 2010, we change from a non registered Canadian cash account to a non registered Canadian margin account? Well, that bring all kind of changes in my broker account that I wasn't even prepare to.

So far for January 2011, I had received, yes, dividend payment in my non registered Canadian margin account, but none of those dividend payment had resulted in a DRIP, which mean that none of my dividend payment had transformed into a brand new stock. There could be 2 reasons for this: 1) a delay for the dividend to transform into one or more stocks, depending or 2) my new margin account of December 2010 has not been set-up for DRIP. I am very tempt to say that my margin is not set-up for DRIP... All those ambitious of mine had giving me A LOT OF TROUBLE. More debt, more dividend, and now, no DRIP. But a question being, can I enroll to a DRIP in my Canadian non registered margin account? That's something else and I do not have the answer to this.

But, if I take the example of the Dividend Lover, I should be able to keep the DRIP even while having margin in my account because from what I understand, Dividend Lover has a margin account and for a while, his dividend income was apply under a DRIP. If, of course, I understood everything correctly...

So I guess I have no choice other than calling TD Waterhouse tomorrow early morning. at this time, the delay for customer service at TD Waterhouse seem to be enormous. But it's not TD Waterhouse fault: it's January, TFSA contribution need to be made as well as RRSP contribution. Both combine together = a lot of calls for TD Waterhouse. But in my situation, if I want to make sure I am enroll on a DRIP, I have no other choice than to call TD. I will keep you post as always to let you know what's going on, just in case you care.

Also, I had set-up in my non registered Canadian margin account a sell order at 9.60$ for 500 stocks of Sprott Inc. (SII). Another brilliant idea of mine to make some $$$.

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