Dividend trade roll/play(redirected from Dividend Trade Rolls/Plays)
Dividend trade roll/play
Dividend Trade Roll/Play
An investment practice in which an investor buys and sells shares near the ex-dividend date, the date after which the next dividend belongs to the seller of the share, rather than the buyer. An advantage of dividend trade roll/play is the fact that dividends are 80% tax exempt with the remaining 20% offset by capital losses. The practice is only profitable if the investor is entitled to the normal 80% exemption on dividends.