04-21-2021, 07:17 AM
(This post was last modified: 04-21-2021, 07:17 AM by ken-do-nim.)
So far what my research tells me is that the extreme version of the Dividend Capture Strategy isn't viable; many stocks take 2 weeks to recover their stock price. However, the strategy that I originally read about, where you make 2 switches a month, seems to be. It is as follows:
1) Pick a monthly payer: ORC, OXLC, PCI, HRZN, etc.
2) Pick 3 quarterly payers; each staggered in separate months. Let's say AT&T for Jan/Apr/Jul/Oct, FMO for Feb/May/Aug/Nov, and NLY for Mar/Jun/Sep/Dec.
3) Each month, pick up the monthly payer, then switch to the quarterly payer at some point, and stay in it past its ex-div; you don't need to return to the monthly payer until it reaches its next ex-div, giving you maximum time to recover the pre-ex-div price.
It may be possible to include a second monthly payer and dance between 3 a month, I'll have to look.
1) Pick a monthly payer: ORC, OXLC, PCI, HRZN, etc.
2) Pick 3 quarterly payers; each staggered in separate months. Let's say AT&T for Jan/Apr/Jul/Oct, FMO for Feb/May/Aug/Nov, and NLY for Mar/Jun/Sep/Dec.
3) Each month, pick up the monthly payer, then switch to the quarterly payer at some point, and stay in it past its ex-div; you don't need to return to the monthly payer until it reaches its next ex-div, giving you maximum time to recover the pre-ex-div price.
It may be possible to include a second monthly payer and dance between 3 a month, I'll have to look.