Dividend Capture

外汇网2021-06-19 16:35:17 57

A timing-oriented investment strategy revolving around the purchase and sale of pidend-paying stocks. Dividend capture is specifically the practice of buying a stock just prior to the ex-pidend date in order to capture the pidend, then selling it after the pidend is paid. The purpose of the two trades is simply to receive the pidend, as opposed to selling at a profit.

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Taobiz explains Dividend Capture

Many corporations engage in pided capture trading because of the limited amount of tax that they must pay on the pidend income of other corporations. Dividend capture is synonymous with trading pidends. It should be noted that many financial planners frown on this strategy for inpidual clients; the amount of time, research and trading commissions necessary to do it successfully often offsets any profits received.

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