For stocks in which
dividend capture is too costly, PDRs may reflect the marginal tax rate of retail investors with longer holding periods.
The Fund also uses 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.
Lummer, 1984, "The Cash Management Implications of a Hedged
Dividend Capture Strategy", Financial Management, 13:7-17
However, this conclusion applies only to a carefully filtered sample of high-yield securities that are likely targets of corporate
dividend capture after the introduction of negotiable commissions in May 1975.
Dividend capture by taxable corporations, which face lower taxes on dividend income than on capital gains, represents a special type of short-term trading.
It invests globally in dividend-paying or income-generating securities across multiple asset classes and also uses enhanced income strategies by engaging in
dividend capture trading; option overwriting; and realisation of gains on the sale of securities, dividend growth and currency forwards.
A major use for nonstandard-settlement trades is
dividend capture.
It invests globally in dividend-paying or income-generating securities across multiple asset classes and also uses improved income strategies by engaging in
dividend capture trading; option overwriting; and realisation of gains on the sale of securities, dividend growth and currency forwards.
The marginal investors are short-term traders who generally practice
dividend capture by buying high-dividend-yielding stocks cum-dividend and selling them ex-dividend.
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.
