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Dividend Capture

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Dividend capture

Dividend Capture
The practice of buying a stock before the ex-dividend date and selling immediately thereafter. The ex-dividend date is the date after which a dividend belongs by right to the seller, rather than the buyer, of a stock. Thus, dividend capture allows the investor to keep the dividend after selling the stock. An investor practicing dividend capture is only interested in a stock for the dividend it produces and therefore sells the stock as soon as he/she can retain the dividend.

dividend capture
The trading of a stock in order to be the holder of record for dividend payment purposes. Once the right to receive the dividend payment has been earned, the stock is sold. Dividend capture is practiced chiefly by corporations; they are permitted to exclude from their taxable income 80% of dividends received. Certain specific tax rules apply to dividend capture.


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But Kirk Mentzer of Huntington Dividend Capture Fund thinks the drugmaker's earnings support its hefty dividend.
Dividend capture by taxable corporations, which face lower taxes on dividend income than on capital gains, represents a special type of short-term trading.
Fund (NYSE Amex: RFR) - Series W - 47 shares rated 'AA'; Rating Watch Negative; --RMR Hospitality and Real Estate Fund (NYSE Amex: RHR) - Series Th - 91 shares rated 'AA' Rating Watch Negative; --RMR Dividend Capture Fund (NYSE Amex: RCR) - Series F - 27 shares rated 'AA' Rating Watch Negative.
 
 
 
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