The stock trading technique called 'Buying Dividends' is becoming more and more popular, especially with the recent increase in the stock market. This 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. 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 divided, 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 next week. Here are a couple of examples showing the stock symbol, the ex-dividend date and the yield.
- Abbott Laboratories (ABT), ex-div date: 10/13/09, market cap: $71.3B, yield: 3.4%
- Corus Entertainment Inc. (CJR), ex-div date: 10/13/09,, market cap: $1.3B, yield: 3.5%
- Mid-America Apartment (MAA), ex-div date: 10/13/09 market cap: $1.3B, yield: 5.2%
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. 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.