What is a dividend capture?

Dividend capture is a strategy of purchasing and sales of shares that are almost ready to declare dividends. In general, a public traded company announces its dividend on a certain date and then states that the dividend is payable to all shareholders of the record on a certain future date. Those who try to buy shares solely to get a paid dividend, then sell, say they are involved in the dividend strategy or dividend trading. The dividend payout will then be allowed if the company had a profit quarter. The notice will then be published via a press release or press conference. Larger companies will have these reports widely reported by financial publications and television stations focused on commercial reports. This can be paid 30 June All shareholders of the record on 15 June. The deadline of June 15 is called the date of ex-business-date, when shareholders can no longer collect dividend payment. Those who want to try to capture the capture of dividends,on 14 June will stand at the end of the day to try to buy this particular supply.

The key to profiting through the dividend capture strategy depends on the fact that it will be possible to sell shares for the price the trader paid, or at a price that is not significantly lower than what has been paid. To this end, traders often want to wait as long as possible before buying to avoid major market fluctuations. The only problem is that when the stock gets ex-business, this payment is deducted from the value of the shares. Therefore, trading with shares for $ 50 after the date of the ex-oldenda will be appreciated for $ 49. Those who use the dividend capture strategy stare that the stallion value of OCK is closer to what has been before the ex-present date and that the shares will be reflected in a relatively short time and increase the value.

While the strategy of capturing dividends is promoted in some books as a way to get rich quickly onThe stock market, many financial advisors strongly recommends against this strategy. This would require a significant amount of study and a certain happiness to come up with shares that would consistently maintain their value enough to be useful. Furthermore, the market that varies wildly makes the use of the dividend capture strategy.