10-29-2013, 08:25 PM
Dividends are taxed at income rates, not like capital gains where holding a stock for long term is only 15%.
Nothing "wrong" with the process. In theory the stock should drop by the amount of the dividend payout once announced, but in a market that has little to do with actual financials these day's, I don't think that plays. I would look at the stock you want to do it on, and back test the theory. Look at the stock price at the dividend announcement date, and then the price after the pay out.
Bottom line is it is not illegal.
Nothing "wrong" with the process. In theory the stock should drop by the amount of the dividend payout once announced, but in a market that has little to do with actual financials these day's, I don't think that plays. I would look at the stock you want to do it on, and back test the theory. Look at the stock price at the dividend announcement date, and then the price after the pay out.
Bottom line is it is not illegal.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
![[Image: maull2.gif]](http://bengtel.com/maull2.gif)
"If you want to change the world, be that change."
--Gandhi