Using Instalments in a Dividend Yield Play

The stock market is an unpredictable world, profits can soar and drop like dead weight in a matter of minutes. Traders employ their own personal tactics and make profit as much as they can. With a consistent strategy, any John Doe can make money in the stock market. One of the most popular gearing form is instalment warrant, coupled with dividend yield play you can make some smart moves at a fraction of the cost.

Instalment warrant enables investors to purchase a share at an minimum outlay and still reap the benefits. Apart from having ownership, they are entitled to dividends and franking credits. Dividend Yield Play on the other hand, is a short term trading strategy that enables you to generate regular profits in a year. By employing dividend yield play using instalment instead of shares, the return in investment is enhanced.

Instalment criteria:

• Regularly geared
• Expiry date of more than 3 months and less than 12 months
• Vanilla instalment is not rolled in 45 days
• Self-funding instalment is exempted, the dividends are used to reduce loan amounts

Apart from the ones mentioned above the other types of instalments that you can research on are plain and rolling instalment. Always remember that this strategy is for active investors who monitor their investment portfolio regularly.