SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis
207 Views, 17 Jan 2022 16:51
Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.
Local pensions' selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.
As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn't seem like a bad idea.