![]() This date marks the first day that any new investors in the stock will not receive the dividend payment. Think of the declaration date as a "heads up" to investors.Įx-dividend date. This is the date when a dividend payment is announced. Specifically, the key dividend dates to know are:ĭeclaration date. If you plan to attempt a dividend capture strategy, then it's important to understand how these dates work. A handful of companies, known as Dividend Aristocrats and Dividend Kings, have lengthy track records of consistently increasing dividend payouts year-over-year but they're the exception, rather than the rule.Ĭompanies don't pay out dividends randomly instead, they follow a schedule for making these payments to investors. Payouts can increase or decrease, depending on the company's profitability. Growth stocks, for example, tend to reinvest profits into expansion rather than paying them out to investors.ĭividend payouts aren't the same across the board. A dividend represents a percentage of a company's retained earnings that are paid out to shareholders. To understand dividend capture strategy, it's important to have some background on dividends and how they work. #Dividend capture strategy freeTry using SmartAsset's free advisor matching tool to find advisors that serve your area today. If you're interested in trying to use a dividend capture strategy, it may be a good idea to talk to a financial advisor first. But it's not for beginners and there are some potential risks involved. Using a dividend capture strategy could be profitable if you're investing in stocks that pay above-average dividends. This approach is also called buying the dividend. ![]() A dividend capture strategy involves purchasing stocks before their ex-dividend date, then holding onto them just long enough to receive a dividend payout. ![]()
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