INTC — Dividend Capture?

By Anonymous Questions, March 14, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Dear Gum, or Mr. Shoe,
My usual genuflection for your great and entertaining work!

A kinda dumb question, but…
Re your semi-recommend of INTC regarding the 4% dividend, how long does one have to hold a stock to get that divvy, and how often is it distributed?
And would it be a possible MO to move in and out of stocks just to get the divvy on them?
It seems so cheeky that there must be reasons why one cannot.

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3 Comments on " INTC — Dividend Capture?"

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Travis Johnson, Stock Gumshoe
Admin
4449
March 14, 2013 11:36 am
If you’re going to genuflect, you can call me whatever you want! You have to hold a stock before it goes ex-dividend (“ex-dividend” means the stock trades without rights to that dividend payment) to get the dividend, you can sell it anytime after it goes ex-dividend and still get the dividend. If you want to pay the lower qualified dividend tax rate, you need to hold the stock for a longer period to qualify for that — more than 60 days is the rough rule. People do try to trade around dividends and use the “Dividend capture” strategy, selling after… Read more »
hblytt
Member
9
hblytt
March 16, 2013 11:22 pm

I would add to the discussion on dividend capture that a stock with a fat dividend (e.g. 3% per quarter) generally drop in value, by the amount of the dividend, on the day it goes ex-dividend.

allenwil
Member
0
allenwil
March 21, 2013 1:16 pm

if the stock drops the amount of the dididend u will lose money as u pay to buy & sell.

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