11/2/2022 0 Comments Dividend capture strategySo, you got your dividend, and you even got a tiny little bump up from the sale of the ETF, too. And if you waited to sell until March 24th, you'd even make money on the deal: it was at 20.87. Look at what happened the next day, March 22: it was back up to 20.78. So, everything you earned from the dividend would be wiped out if you did this. The very next day, March 22, the price had dropped to 20.64 - exactly that 21-cent difference. I asked about this before, here:įor example, QYLD's last ex-div date was 21 cents per share on March 21. Two dividends on the same money in one month! Doing this would really increase the impact of your investmentsĪh ha! Sounds great! But I was told that there's a catch to this that prevents you from making money here - that the price of whatever ETF you're doing this with has the amount of the dividend built into the price. So, you sell off your position in QYLD on the 20th, the sale takes a couple of days for the money to clear back into your account, and then, say, on the 27th, you turn around and buy JEPI with that same money. What if you sold QYLD on, say, April 20th, then bought, say, JEPI? (My understanding is that as long as you owned QYLD at the market open on the record date, you get paid, even if you immediately sell it off, the way I'm describing here.) Last "month", JEPI's record date was April 4th. In other words, if you own QYLD on that date, QYLD will pay you the dividend of 20 1/2 cents per share on April 26th. So, QYLD just announced that their dividend record date is April 19, 2022. I was told this is called the dividend capture strategy: buying and selling these dividend ETFs during the month to capture their dividends and get more money.
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