![]() The payment date: The payment date is the date that the payments are often made in the form of checks or money credited to shareholders' accounts.Their new shares may drop in price, but this depends on the timing. What owners need to know is that if they sell shares just one day before the record date, they won't receive the payment. Note that this date is a formality because an investor must buy shares prior to the ex-dividend date to own them by the record date because of the "T + 3" period. But while this strategy is fairly simple academically. The record date: The record date is the date after which new buyers of the shares will not qualify for the pending dividend payments. T he dividend capture strategy is designed to allow income-seeking investors to hold a stock just long enough to collect its dividend.If you can sell it for as much as you paid, you have captured the dividend at no cost, other than the transaction costs. ![]() For instance, if the ex-dividend date was today, and you sold your shares today, you would still receive the payment even though the sale won't settle for three days. Dividend stripping or cum-ex trading can be used as a tax avoidance strategy, enabling a company to distribute profits to its owners as a capital sum, instead. Dividend capture strategy returns are the trading technique of buying a stock just before the dividend is paid, holding it just long enough to collect the dividend, then selling it. I understand that dividend capture is difficult because ex-dates typically open up less the dividend amount on the price. I was wondering if anyone else has tried this and has it work for them. Seems to work for some and criticized by others. The day prior to the ex-dividend is called the in-dividend date. So much that I’ve looked into the whole Dividend Capture strategy. You may see this called a "T + 3" settlement period, which stands for "Trade date plus three." In short, any owners of the stock on the day before the ex-dividend date will receive the payment. This day is often two trading days before the record because stocks settle three days after the trade. ![]() The ex-dividend date: This date is the first day on which new buyers of a stock will not receive the dividend.The investor then holds the stock just long enough to receive the dividend and then sells the stock shortly after the ex-dividend date. The board will also report the record date and the date of the payment. The basic idea of a dividend capture strategy is to purchase a stock a few days before the ex-dividend date, which is the date by which a shareholder must be on record to receive the dividend payout. The declaration date: This is the date that the firm's board of directors reports that a dividend payment will be made.
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