A stock’s price will dip when a dividend payment is made. Some stocks recover from the price dip faster than others, which means that over a short period of time, an investor can benefit from the dividend payment with no net change in the stock price by implementing the Dividend Capture Strategy.
The key to successfully executing the Dividend Capture Strategy is to find stocks that recover quickly after committing to a dividend payment and timing it right in order to minimize the risk from holding the stock. We’ve created the tool below to help you do just that! Learn more about what it takes for a stock to make it onto this exclusive list, and how to best execute the dividend capture strategy.
* Trades may be subject to brokerage fees and taxes, depending on your broker and account type.
Step 1: Find a Stock From the Table
Traders should trade stocks that have a combination of the highest yield on cost and the lowest average stock price recovery days.
Step 2: Buy the Stock One Day Before the Ex-Dividend Date
Buy the stock one day before the ex-dividend date and hold the stock overnight for your name to appear in the record books of the company. The dividend will hit your account on the dividend pay date.
Step 3: Sell the Stock After it Recovers
Sell the stock as soon as it recovers back to your original buying price. The average days for a stock price to recover should give you a fair idea of the number of days you may expect to hold the stock before selling.
Our list is not meant to represent a complete portfolio, nor is every stock on this list appropriate for all investors. We highly encourage investors to do their own research before making any investment decision.