What is a Dividend strategy?
Description: Generally speaking there are two different approaches to benefiting from dividends. The traditional approach is where an investor focuses on buying and holding a portfolio of stable dividend-paying stocks, in order to generate a steady income stream over time. An example of this approach would be the Dividend King Strategy (which specifically focuses on companies that have been consistently increasing their dividend payouts over at least 50 years). Some of the factors to consider for this strategy: A long history of increasing dividends, financial stability, sustainable dividend yield, consistent earnings and cash flow to support dividends and the company's growth prospects.
The second approach is popular for the short term traders and is called a Dividend Capture Strategy. This strategy is an active trading strategy and the goal is to hold the shares only long enough to capture the dividends, before selling it again. Stocks are sometimes only held for a single day. For this strategy, it is important to buy the stock before the ex-dividend date (the date that the stock will now trade without the dividend value) in order to receive the dividends and to keep in mind that there tends to be a decline in value right after the ex-dividend date, because the markets are not perfectly efficient.
On BROKSTOCK: On the BROKSTOCK app, dividend announcements can be found on the For You screen under the "Events and Dividends" section.
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