3 Stocks For the 'Buying Dividends' Technique

If you want to try the stock trading technique called 'Buying Dividends,' which is the process 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, which we seem to be in now.

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 and sortable Excel list of the stocks going ex dividend during the last week of June. They came up with over 20 companies all with market caps over $500 million, and several with yields above 8%, all from June 22 to June 30. Here are a few examples showing the stock symbol, the ex-dividend date and the yield:

Xcel Energy Inc. (XEL) 6/23/2009 5.57%

Canadian Imperial Bank of Commerce (BCM) 6/25/2009 6.54%

Essex Property Trust, Inc. (ESS) 6/26/2009 5.95%

The rest of the ex-dividend stocks can be found at wsnn.com. If you like dividend stocks, you should also check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com. 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

[YoYoMama:]

Symbol BCM is not a valid symbol. Try again.

Jun 15 10:02 AM

[TCK:]

Although, I have used this strategy at times, I think it is basically a "swing trade". Since the price of the stock is adjusted downward after paying the dividend it must rise a enough to cover both the dividend payed and amount of commission. Consequently the strategy could be used with any stock in an uptrend.

In the end must come under the category of "No Free Lunch".


Comments appreciated.

Jun 16 07:01 AM