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 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 using it during bear markets. The key to being successful with this strategy is to only buy stocks that dip significantly prior to the ex-dividend date.
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 on or after the ex-date. The actual dividend may not be paid for another few weeks.
WallStreetNewsNetwork has compiled a downloadable and sortable list of stocks going ex-dividend in the near future. The list contains many dividend-paying companies, many with market caps of over $500 million and yielding over 1%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount and the annual yield:
|Ameren Corporation (AEE)||12/12/2017||0.458||2.81%|
|Guess?, Inc. (GES)||12/12/2017||0.225||5.64%|
|Hewlett Packard Enterprise (HPE)||12/12/2017||0.075||1.84%|
|HP Inc. (HPQ)||12/12/2017||0.139||2.53%|
|Macy's Inc (M)||12/14/2017||0.377||6.02%|
|Nasdaq, Inc. (NDAQ)||12/14/2017||0.38||1.79%|
The additional ex-dividend stocks can be found at wstnn.com. (If you have been to the website before and the latest link doesn't show up, you may have to empty your cache.)
Talk to your accountant about the tax consequences of dividends of stocks held over a short period of time.
Disclosure: Author did not own any of the above at the time the article was written.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.