Question: Dividend arbitrage (more precisely dividend capture) strategy is a timing-oriented investment strategy focused on buying and selling dividend-paying stocks. a) Describe the details (procedures) of
Dividend arbitrage (more precisely dividend capture) strategy is a timing-oriented investment strategy focused on buying and selling dividend-paying stocks. a) Describe the details (procedures) of dividend capturing strategy. b) This strategy is not an arbitrage strategy in that the strategy is not free from risk. What are the risks involved with dividend capture strategy? c) Dividend capture strategy has become less popular since 2000. What are the possible reasons for this change?
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