do you know what "dividend rollover plan" is?
glossary FAQ: glossary.
Braelyn E. From Luxembourg
17 February, 2009
"dividend rollover plan " is An investment strategy in which a dividend-paying stock is purchased right before the ex-dividend date, which gives the purchaser the right to the divided, with the position being sold off shortly after the ex-dividend date. The sole intention of this practice is to reap the value of the dividends while breaking even on the shares. Ideally, this strategy is designed to maximize short-term return on shares while minimizing risk.
Also known as a "dividend capture strategy".
For example, suppose that XYZ Corp. Announces that it will distribute a dividend of $2/share and that the ex-dividend date will be on March 16. Joe can attempt a dividend rollover plan by buying the XYZ Corp. Stock on March 15 (or any other day before the March 16) and then selling the shares on March 16 to regain most of the purchase value of the shares. Ideally Joe should profit by $2/share (the dividend's value).
Proponents of dividend rollover planning argue that immediate returns on investments are made while reducing risk. However, opponents of the strategy believe that the expected dividend value is already incorporated into the stock before the ex-dividend date because the market anticipates the dividend payout. Visit ForexWebTrader
do you know what "dividend rollover plan" is?
glossary FAQ: glossary.
Braelyn E. From Luxembourg
17 February, 2009
"dividend rollover plan " is An investment strategy in which a dividend-paying stock is purchased right before the ex-dividend date, which gives the purchaser the right to the divided, with the position being sold off shortly after the ex-dividend date. The sole intention of this practice is to reap the value of the dividends while breaking even on the shares. Ideally, this strategy is designed to maximize short-term return on shares while minimizing risk.
Also known as a "dividend capture strategy".
For example, suppose that XYZ Corp. Announces that it will distribute a dividend of $2/share and that the ex-dividend date will be on March 16. Joe can attempt a dividend rollover plan by buying the XYZ Corp. Stock on March 15 (or any other day before the March 16) and then selling the shares on March 16 to regain most of the purchase value of the shares. Ideally Joe should profit by $2/share (the dividend's value).
Proponents of dividend rollover planning argue that immediate returns on investments are made while reducing risk. However, opponents of the strategy believe that the expected dividend value is already incorporated into the stock before the ex-dividend date because the market anticipates the dividend payout. Visit ForexWebTrader
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- Background:
- Xforex is an online forex service provider. Though stepping off a few years ago to a basic start, it's slowly maturing into one of the most palmy systems on Earth.
- Some of Xforex's Specs:
- Whether you're a Spanish, Japanese, English or French speaker (or any other of a wide array of other languages), you may work this multilingual forex conveniently and with great ease. If you presume that less is more - you are wrong. This platform sports a unique production explanatory interface. This forex's got round the clock service and a customer support line. You should also know, that to tell you the truth, this platform isn't hugely innovative. Instead, it applies the more traditional intricacies of it's predecessors. Not that there is anything wrong with that!
- Advantages:
- - Twenty Four Hour Access - Nice Display - Customer Support - Beginner Friendly
- Disadvantages:
- - Few Options of Currencies - Confusing Options
- Short Story:
- A often scattered yet feature full system.
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