Maximizing a firm's revenues by purchasing stock in other firms in order to collect the maximum amount of dividends of which 70% is tax-free.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The act or practice of buying shares in a company before the ex-dividend date so as to maximize one's income from dividends. Trading dividends is normally practiced by corporate investors because the large majority of their income from dividends is tax free.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The purchase and sale of equity securities with the goal of maximizing dividend income. This practice is used primarily by corporate investors for which 80% of dividend income is tax-exempt.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.