How do you find good stocks with the best monthly or quarterly dividends?
What does the ex-dividend date mean?
How can you trade stocks so you buy it in time to obtain the dividend, but make money and sell it too? Or are dividend stocks better to hold and get income? What are some good stocks to buy?
Let me try and explain. The ex-dividend date is the date that the dividend and the stock split. If you are holding stock on or after the ex-dividend date and sell it, you keep the dividend and who ever buys it only gets the stock.
If you sell the day before the ex-dividend date, you lose the dividend for that period. So, if you are looking to pick up a dividend paying stock you would want to get it the day before it goes to ex-dividend.
Remember though if you are thinking of getting in right before that date, and then dumping them, the amount of the dividend to be paid to share holders comes off the top of the stock price and must be made back up over time, so you would be operating at about break even if you got out immediately.
Go take a look at Bank of America. That is a very nice dividend paying company. Growth on one end and one of the most generous dividends of all big companies.
How To Analyze A Stock — Buy Growth and Value Stocks, Part 4 of 5