Dividend capture is a strategy to buy and sell shares listed before a dividend declaration. The key to profit is selling shares close to the price paid, but the strategy requires skill and study.
A dividend capture is a strategy to buy and sell shares that are listed cases to declare a dividend. In general, a corporation that issues a stock market will declare its dividend in a specific fee and then say that the dividend will be paid to all registered stockholders in a specific future fee. If it says that those who intend to buy stocks solely to receive a dividend and then sell it, they involve themselves in a dividend capture strategy or in the dividend exchange.
Generally speaking, during a meeting of the executive board, a corporation will present its claims quarterly. Luego will authorize a payout of dividends, if the company has a rentable quarter. An announcement of this will be public through a press release or press conference. The larger companies will tend to have this news widely disseminated by financial publications and television stations oriented towards business news.
For example, Widget Inc. may announce a $1 US dollar (USD) dividend payout on June 1. This can be paid on June 30th to all stockholders registered on June 15th. The June 15 limit fee is called the ex dividend fee, the fee in which stockholders ya cannot cobrar a dividend. Therefore, those who wish to participate in the capture of dividends will line up with the end of the day on June 14th to negotiate the purchase of this action in particular.
The key to obtaining profits using a dividend capture strategy depends on being able to sell shares at the price that paid the merchant, or at a price that is not substantially lower than what was paid. To do this, the merchants on the menu want to wait as long as possible before buying to avoid large fluctuations in the market. The only problem in doing it is that when a share goes without dividing, I pay if the value of the share remains. Therefore, a stock deal at $50 USD, after the ex-dividend fee, will be valued at $49 USD. They use a dividend capture strategy based on the fact that the real value of the stock is more likely to be the number before the ex-dividend stock and that the stock will recover and increase in value in a relatively short period of time.
If the dividend capture strategy is promoted in some books as a form of rapid appreciation in the value market, many financial advisors are recommended to undertake this strategy. A considerable amount of study, and some skill, would be needed to obtain actions that conserve constantly their value sufficient for this strategy to be worthwhile. Furthermore, a market that fluctuates enormously would be more difficult to use than a dividend capture strategy.
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