We're taking a look at the surprisingly simple dividend capture strategy, an approach that enables you to secure dividends EVERY DAY. Ultimately, what I want to figure out with the dividend capture strategy is: does it work?

00:00 - Intro
0:41 - Dividend Capture Strategy Explained
3:02 - Does the Dividend Capture Strategy Work? (3 Problems)
3:29 - Problem 1: The Theory of an Efficient Market
5:26 - Problem 2: Dividend Capture Taxes & Costs
7:04 - Problem 3: Market Sentiment (Inability to Time the Market)
7:38 - Dividend Capture Tips
7:48 - Tip 1: Vetting Dividend Capture Stocks
9:06 - Tip 2: Using Tax-Advantaged Accounts
9:46 - Tip 3: Targeting Special Dividends
10:22 - Tip 4: Dividend Capture with Options
11:26 - A Final Warning on the Dividend Capture Strategy

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LINKS & RESOURCES

Benzinga Ex-Dividend Calendar:
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Referenced Studies:
Ex-Dividend Prices from 1962 to 1987:
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Ex-Dividend Prices in 2007 & 2008:
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Learn about the MANY benefits of a Roth IRA (GREAT for dividend capture):
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Get started with dividend capture investing on Robinhood or M1 Finance:
Robinhood: [ Ссылка ] (Get a free stock up to $500!)
M1 Finance: [ Ссылка ] (Get $10 free!)

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The #DividendCapture strategy is tempting, giving the opportunity to collect dividends every single day. But, despite being incredibly simple, it might not be a worthwhile investment strategy. For the love of #Dividends, I wanted to give this strategy a closer look.

The dividend capture strategy all begins with the ex-dividend date. The dividend capture strategy theory is pretty straightforward: buy a stock before the #ExDividend date. Then, sell it on or after the ex-dividend date, once you've locked in the dividend.

I give many examples in this video because it's crucial to understand the ex-dividend. You have to make sure you are holding the stock at market close before the ex-dividend date. Companies use this date to take record of their shareholders and distribute dividends accordingly. Once this has happened, you can sell your stock and move onto the next one.

So why isn't everyone doing the dividend capture strategy for passive dividend income? Well, that's because there are a handful of variables that make this strategy difficult to profit from. You have to consider:
1. Price corrections after dividend payout - stemming from the "dividend irrelevance" theory, this suggests that markets are perfectly efficient. When a stock pays its dividend, it should drop in price equal to the value of the dividend - leaving investors with a net gain of 0. But, research shows this might not be true in practice!
2. Taxes and costs of trading - With the dividend capture strategy, your dividends will likely be taxed as income. So, your dividend has to be large enough to leave you with a profit after accounting for any loss in share price & any taxes owed on your dividends.
3. Market sentiment on a given day - If the market chooses to move downward on your ex-dividend date, you might be forced to sell at a loss even though the stock would've ordinarily held its value. This risk is always present and near impossible to predict.

Luckily, I've got 4 tips to help you weigh the scales in your favor if you want to try this strategy out!
1. Vet your dividend stocks - look for large-cap stocks that have maintained their value on ex-dividend dates.
2. Use tax-advantaged accounts - Roth IRAs and traditional IRAs can shield you from taxes, widening your margins for trading in and out of stocks and possibly making the difference of profitability with you dividend capture.
3. Target special dividends - special dividends are rare and infrequent, but they are much larger than standard dividends. With bigger yields, there's bigger opportunities for profits with these dividends.
4. Dividend capture with options - buy options contracts to profit when stock prices DO fall on the ex-dividend date. Just beware the added risks and costs involved!

Are you trying the dividend capture strategy? Tell me about your experience in the comments! And make sure to subscribe and stay tuned for my dividend capture strategy results.

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DISCLAIMER: NOT FINANCIAL ADVICE.
The content in this video should not be used as the basis for any investment decision, as it is for entertainment purposes only. Additionally, some of the links contained in this description are affiliate links. I may earn a commission via Amazon, M1 Finance or Robinhood should you choose to purchase or sign up at the links provided.

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