Solution-Would the dividend harvesting strategy work

Would the dividend harvesting strategy work

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Reference no: EM132770425

Imagine the following strategy for making money. There are over 500 companies that pay dividends in the US. All dividend-paying companies have to announce the dividend date in advance. So, you just wait and then buy the shares the day before the dividend is paid out, hold for one day to collect the dividend, then sell the stock and invest in the next stock that is about to pay its own dividend. You then go on to the next stock. This way, you can collect all the cash without having to hold each stock for the entire quarter/year.

Problem 1: Would this dividend "harvesting" strategy work? Why or why not?

Reference no: EM132770425

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Would the dividend harvesting strategy work

Reference no: EM132770425

Reference no: EM132770425

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