dividend capture

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.
References in periodicals archive ?
In seeking its primary objective of current income and gains, each Fund may engage in dividend capture trading.
The Fund also utilizes enhanced income strategies by engaging in dividend capture trading, option overwriting, and realization of gains on the sale of securities, dividend growth, and currency forwards.
Dividend capture by taxable corporations, which face lower taxes on dividend income than on capital gains, represents a special type of short-term trading.
In seeking its objective, each Fund may engage in dividend capture trading.
A major use for nonstandard-settlement trades is dividend capture.
The underlying stocks for which primes have been created are generally those of large firms with high dividend yields and listed options, making them good candidates for cum-ex trading, especially dividend capture strategies by incorporated entities.
The Fund also utilizes enhanced income strategies by engaging in dividend capture trading, option overwriting, realization of gains on the sale of securities, dividend growth, and currency forwards.
The adjustment in the Fund's monthly distribution rate primarily reflects anticipated reductions in the amount of dividend income the Fund expects to receive due to the ongoing pressures on corporate dividend rates and costs of implementing the Fund's dividend capture trading strategy.
Huntington Dividend Capture Fund--employing a rigorous selection process, the fund manager seeks companies with attractive historical dividends that may be undervalued or out of favor.
Specifically, the Fund will seek to blend the equity dividend value strategy with the Fund's current dividend capture strategy.
The Fund actively employs a dividend capture strategy.