From The Editor. Issue 08: The Art of Dividend Stripping

Is there money to be made by trading around a company’s exdividend date? This chestnut has plagued investors for decades.

Stock ‘ex’ dates are incredibly interesting because we often observe two phenomena. Firstly, a small but noticeable run-up in the share price of a company just before it goes ex-dividend; and secondly, when the ex day occurs (when the dividend becomes payable), the share price often drops by less than
the value of the grossed up dividend.

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