/biz/ - Business & Finance

>>53609056
Log off everyone, he has broken capitalism

>>53609056
It's called "collecting pennies in front of a steamroller"

>>53609107
not an argument
>>53609147
provided the company that provides the divys is solid then theres no steam roller

>>53609175
Solid companies have your scheme priced in, but hey, you're faster than a computer trade. Check the charts, this is not hard.

>>53609175
so go ahead and try it

>>53609056
Look up “The Irrelevance of Dividends” video from PWL Capitol manager Ben Felix on YT. Dividends are not a free lunch. They come out of the NAV. Honestly shocking this isn’t more widely understood.

>>53609056
as dividend day approaches, the stock price goes up by the expected dividend amount. so if you buy, you're paying $(stock intrinsic value + expected dividend). then after you get dividend, the stock price goes back to its Intrinsic value. so you essentially made nothing (except if expected dividend was lower than actual)

>>53609175
every obvious opportunity for arbitrage has already been priced out by algos and computers
if you want to find actual arbitrage you have to get into some really obscure shit no one else has found, things like finding spreads that can completely cancel their risk curves

>>53609056
This is called Dividend Capture and it is done by day traders. If you're not doing it with very high amounts of capital your time probably would have been better spent working at McDonalds

>>53609264
so just buy a stock two weeks before divi pay out ride the pump and sell the day before pay out?
fool proof?

>>53609350
Its called "trading". Go on, its easy, impossible to loose money

Looked at Verizon's chart, and they're right. Price rises leading to the payout date and then immediately dumps back to normal.

>>53609056
>redpill me on exactly what would be stopping me from buying a stock
ur dad

>>53609498
>They know?

>>53609056
someone's dad