Wouldn’t it be nice to collect dividends every single day? That’s exactly what some traders aim to do.
Unlike regular dividend investing, which is focused on long-term stocks, some traders try to profit from holding stocks for short periods, just enough to pocket the dividend.
This is known as the dividend capture strategy. In this post, we’ll explain how this trading strategy works, give a real-world example, and outline advantages and disadvantages as well as some alternatives.
Note: This article originally appeared at Investors Alley.