Editor's note: Originally published on August 11, 2014
Here is our latest update on the stock trading technique called 'Buying Dividends,' also commonly referred to as 'Dividend Capture.' 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, and can work in flat or choppy markets, but you need to avoid the technique during bear markets.
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.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, and the yield.
|Gladstone Land Corporation||LAND||18-Aug||11.8%|
|Maxim Integrated Products||MXIM||19-Aug||3.7%|
|Scorpio Tankers Inc.||STNG||20-Aug||3.7%|
|Western Asset Municipal||MTT||20-Aug||4.4%|
The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.)
Disclosure: Author did not own any of the above at the time the article was written.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.