Here is our latest update on the stock trading technique called 'Buying Dividends'. 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. In flat or choppy markets, you have to be extremely careful.
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 during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.
- Reaves Utility Income Fund (NYSEMKT:UTG) market cap: $557.9M 10/17/2011 yield: 6.1%
- Blackstone/GSO Senior Floating Rate Term Fund (NYSE:BGX) market cap: $271.8M ex div date: 10/17/2011 yield: 7.3%
- Main Street Capital Corporation (NYSE:MAIN) market cap: $416.6M ex div date: 10/18/2011 yield: 9.2%
- Western Asset Global High Income Fund Inc (NYSE:EHI) market cap: $359.3M ex div date: 10/19/2011 yield: 10.0%
- Putnam Managed Municipal Income Trust (NYSE:PMM) market cap: $420.9M ex div date: 10/20/2011 yield: 7.2%
- Alpine Global Premier Properties Fund (NYSE:AWP) market cap: $612.6M ex div date: 10/21/2011 yield: 10.9%
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.) 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.
Disclosure: Author did not own any of the above at the time the article was written.