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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!