NameDividend Capture
TypeEquity
RiskLow
RewardLow
CycleAny duration typically daily
Profit/Loss0-1%
MarginNumber of shares X share price
Entry RulesPurchase shares at open of ex-div date
Reference:
Dividend Calendar
Dividend Capture Using Covered Calls
Investopedia Dividend Capture



About Strategy

Dividend capture is a strategy technique to enter and exit the trade to capture a stock dividend for profit. The trader is eligible when the ownership is held by the ex-dividend date. The next trading day after the last trading date the price can adjust downward equivalent to the dividend rate. Some opportunity exist for daytraders in early morning trading for a directional upward play. A well devised strategy over several days leading up to the ex-dividend date may present potential to capture the dividend.