Buying Dividends: Stocks Going Ex-Dividend in Last Half of May

If you want to try the stock trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend, there are many stocks to choose from. This technique generally works only in bull markets.

When you buy dividends, there are many stocks in many different sectors to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork has compiled a free downloadable Excel list of the stocks going ex dividend during the last half of May. Here are a few examples:

Blackstone (BX) 5/27/09 yield: 9.5%

Hawaiian Electric (HE) 5/19/09 yield: 7.3%

Great Plains Energy (GXP) 5/27/09 yield: 5.9%

If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com. For more details on dividend definitions, check out definitions of dividend dates. Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author doesn't own any of the above.

Comments

[rick12345:]

dividend chasers will get burned this time around, unless of course the market steadies.

May 15 04:37 PM

[THofler:]

I remember tracking the monthly ex-dividend decline in the stock price of Canetic Resources a couple years ago (before its merger). On average, this price decline exceeded the value of the large dividend by substantial margins. So you could actually make more money by skipping the div. and swing trading the ex-div price change.

Although with different timing, the dividend capture method was slightly profitable also. (Emphasis on slightly)

May 15 10:42 PM

[Alan Young:]

This works when the market is trending upward, because you can generally sell a stock at the same or higher price a little later.
In this market? -- good luck.

Oh, there's an error, too: you can sell a stock ON the ex-div date and still be entitled to the dividend.

May 16 02:25 AM

[mangiamillie:]

This article is a veiled commercial for WSNN.com. Click on the recommended web sites and you'll see what I mean. This diminishes Seeking Alpha.

May 16 08:17 AM

[JOETRADER:]

SURE LOOKS LIKE IT TO ME TO GET CHEAP ADVERTISING.


On May 16 08:17 AM mangiamillie wrote:

> This article is a veiled commercial for WSNN.com. Click on the recommended
> web sites and you'll see what I mean. This diminishes Seeking Alpha.

May 16 08:43 PM

[Dividend Gr...:]

Actually dividend capture strategies are no free lunch. This article explains why:

seekingalpha.com/artic...

May 18 03:30 PM