A dividend capture strategy is an income-focused stock trading strategy that experienced traders also call “buying the dividend.” This strategy means that you purchase stocks before their ex-dividend date. At this point, you hold onto them until the company issues its dividend payout. Day traders often utilize this strategy to make the most of dividend payouts.
In this article, we’ll go over the basics of dividends. We’ll also consider dividend dates and payouts and walk through the details of a dividend capture strategy and how you can implement it for your needs. We’ll also go over the risks of investing using this strategy.
This post appeared at Dividend Stocks Research.