DD Dividend Capture Strategy

DD's Dividend Capture Strategy

Warning: Dividend Capture Strategies won't work in declining markets.

The 'ex-dividend' date is the date when new buyers are not eligible to receive the next dividend. "Dividend Capture" strategies involve buying shares before a stock goes ex-dividend and selling at a predetermined time, typically after the stock goes ex-dividend. There are many variations of these strategies, but since stocks often drop when they go ex-dividend, many pundits advise that none of these strategies work.

I saw the warning on your site to the effect...if you don’t know what you are doing, you can lose money using a dividend capture strategy.

I use your site, and LOVE it. I make $10-$20,000 every year with the dividend capture portion of my portfolio, and it would not be possible without your site. Dividend capture is like fire. If you don’t know what you are doing, you can get burned. But, you can also cut your hand with a knife if you don’t know what you are doing, or drive off the road if you can’t drive a car. I have been using dividend capture for about 10 years, and it is an excellent way to add extra $$$ to your portfolio that you otherwise wouldn’t have been able to capture.

Keep up the good work!

Buffalo, NY

DD's Advanced Dividend Capture Strategy

Our research has found that, all else equal, a dividend payers' share price typically begins moving up two or three days after the announcement, and often peaks one or two days prior to the ex-dividend date. Then, the share price usually drops on the ex-dividend date, sometimes more, sometimes less, than the dividend amount. Based on those findings, here's what we advise:

1) Buy on the announcement date or within two market days after the announcement (sooner is better).

2) Sell the day before the ex-dividend date. While selling before you're eligible to collect the dividend sounds counterintuitive, we've found that you'll come out ahead more often than not by following that strategy.

Often: All Else NOT Equal

Many factors can come into play to disrupt our strategy. Here are two:

• A strong market downdraft will overwhelm the dividend effect and you will end up with a loss.

• Companies often declare dividends a couple of days before reporting quarterly results. Disappointing quarterly numbers will drive the share price down, regardless of the dividend.

The table below lists dividends announced today and two market days back. Keep in mind that nothing works all of the time in the stock market and many trades that follow our strategy will not be profitable.

Errors happen. Verify all data before taking action

Dividend payment data tends to be error prone, so verify everything before tacking action. Be especially wary of listings showing yields above 20%, Also, foreign stocks are especially error-prone due to currency translation issues.

Dividends paid by foreign stocks may be subject to 15% to 25% tax withholdings.

How to Copy this Calendar into Excel Spreadsheet

1) Highlight entire calendar • 2) Copy to clipboard (Ctrl + C)

3) Place cursor on spreadsheet • 4) Click on "edit," then select "paste special," then select "Text"

We have not researched these securities and don't know whether they are suitable for a dividend capture strategy.

Data updated twice daily: before the market open and after the close.

Data accuracy not guaranteed. Verify before taking action.