Once I sell and make my profit, I move on to the next stock that is paying a dividend within the next few days or weeks. Heck sometimes the stock price could down, but after you do the difference given how much you made in dividends, you are still ahead (not by much though). I will sit on it, until I am back to the green. ![]() Well, when that is the case, I don't sell. Now I know a lot of you are saying that the price could go down too. Of course, if price has gone up a lot since the time I bought it, I will make more. Like I said, and after accounting for trading fees, I am making an average of $35-60 earning on every transaction (depending on what the yield is). Once I am eligible to get the dividend, I will look at the stock price, and assuming it is trading at or above the price I bought it at, I will sell it right away. ![]() I buy the stock just a few days before its ex-dividend date. Not to mention, I am doing it within an TFSA account, so I am paying no taxes.īasically, I look at TSX 60 companies (large cap) that are paying at least 3.5% dividend. ![]() This is how I have been doing it, and so far so good, but since I am working with a small amount of money (between 5-10K) it limits how much money I can make, but I am fine with that, especially since this is just a start and I am trying to become familiar with it first. I actually started applying it over a month ago or so, and as I was looking on google to see more information about certai dividend, I realized that this is common and there is even a name for it (Dividend Capture Strategy) In this case, it was the 'Dividend Capture Strategy'. I love it when I am thinking about a certain concept in finance or already applying it, and then realize that there is actually a name for it.
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