The dividend shuffle game?

[fenders53]

(04-21-2021, 07:17 AM)ken-do-nim Wrote: 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.

It's going to work like my method.  Trade might be there several months in a row, then it may not be for awhile.  What will make a strategy like this fail is if you buy random stocks or funds you haven't properly researched because an ex-dividend date happens to work.  Long way of saying don't force trades and get yourself trapped overweight in crap you don't really want to own.