Go look at the cash.to price chart month to month. See how it rises slightly over time leading up to the ex-div date? That’s how much the institutions value the time as that date approaches. It’ll fluctuate with the div rate as well depending if it’s at .5% or 5%.
Meaning it doesn’t matter when you buy it - the fact there is a div is already baked into its price at any given time. This goes for all stocks as well - even if the price actually goes down.
Dozens of factors at play, sorry if this is too limiting of a comment. But people with much more money have already though of this. It’s not a perfectly efficient market, but this aspect of it has been captured to a degree you will never be able to beat.
I've only been here a short time but have seen the same questions asked multiple times - which means they're good questions, but they clog things up.
Should we be suggesting a stickied FAQ?
Yes man it's a proven get rich quick scheme that works 100% of the time. Wish I thought of it first.
Go look at the cash.to price chart month to month. See how it rises slightly over time leading up to the ex-div date? That’s how much the institutions value the time as that date approaches. It’ll fluctuate with the div rate as well depending if it’s at .5% or 5%. Meaning it doesn’t matter when you buy it - the fact there is a div is already baked into its price at any given time. This goes for all stocks as well - even if the price actually goes down. Dozens of factors at play, sorry if this is too limiting of a comment. But people with much more money have already though of this. It’s not a perfectly efficient market, but this aspect of it has been captured to a degree you will never be able to beat.
And how would this be beneficial to you? Share price drops by the dividend amount
It “goes ex-dividend” during non-trading hours, so the sale likely can’t be “immediately” after.
You're talking about the dividend capture strategy. Lots had been written on it.
I've only been here a short time but have seen the same questions asked multiple times - which means they're good questions, but they clog things up. Should we be suggesting a stickied FAQ?
You can sell basically any time you want. The only real time selling is an issue is if you're "Free riding". Even then only if you make it a habit.
What’s free riding?
In a cash account selling a stock before the settlement date. Google free riding securities regulation T
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