I’ve not done any candlestick reading exercise, but transaction fees according to share prices can be calculated. Therefore, the “Dividend Capture Strategy” is largely about finding out what is the absolute lowest stock price I can sell before dropping into losses.Īssumption 3: The prices can be calculated People will sell the shares on the ex-date because they already qualified for the dividends, thus lowering the stock price. Therefore, any dividend I plan to capture must be higher than transaction fees.Īssumption 2: Stock prices always drop on dividend ex-date Once the record date passes, the trader or investor makes an exit by selling the stock. This strategy involves staying invested in a company just long enough till the record date. If I buy 100 shares of Stock A at RM1.00 per share, then sell the shares at RM1.00, I will lose money because of transaction fees. The dividend capture strategy is an investment strategy that many traders and short-term investors use to receive dividend that a company pays out. Continue reading JDCS Accredited Membership DCS Accredited Membership can only be applied by representatives of DCS Accredited Corporate Members.

All applicants must be sponsored by DCS Accredited Member. I need the brilliant minds of /k speculators to help me check if my assumptions are wrong.Īssumption 1: The dividend must be higher than the cost of trading DCS Membership can only be applied by investors deploying Dividend Capture Strategy. I’m now interested in pursuing the “Dividend Capture Strategy.” I’ve built a spreadsheet to help me decide which stock is worth betting on. Since I’ve delegated all retirement investment to a financial planner, I have spare time and money to tinker in the speculation (day trading) arena.

Dividend capture strategy