Living off dividends

[Armani]

Hi,

I am a new member of this forum and just a had a quick questions in regards to making money off Dividend stocks:

Can we buy a stock just before dividend's record date, hold it a few days after record date and then sell it. By doing this, you will not be locking up your capital and instead you will make money be receiving dividends. Do people already do this? or this is illegal?

Thanks in advance

Keener :P

[Armani]

Any thoughts?

[BadThad]

Originally Posted by Armani

Hi,

I am a new member of this forum and just a had a quick questions in regards to making money off Dividend stocks:

Can we buy a stock just before dividend's record date, hold it a few days after record date and then sell it. By doing this, you will not be locking up your capital and instead you will make money be receiving dividends. Do people already do this? or this is illegal?

Thanks in advance

Keener :P

Absolutely! I've done it many times, it's allowed. However, you and a lot of other people usually have the same idea and sell after the dividend date of record.....this causes the stock price to go down often killing your dividend profit. It's a tricky thing to pull off successfully....but it CAN be done.

[b_radlewis]

Originally Posted by BadThad

Absolutely! I've done it many times, it's allowed. However, you and a lot of other people usually have the same idea and sell after the dividend date of record.....this causes the stock price to go down often killing your dividend profit. It's a tricky thing to pull off successfully....but it CAN be done.

This is actually what I have been doing. Very successfully I might add. lol I have leaned it is all about timing.