Companies that pay dividends have a “record” date. Does that determine who owns the stock on that day and who gets the dividend? If so, why not buy stock the week before the day of record, collect the dividend and then sell the stock? I know this would encourage churning, but for high-yield stocks, it could prove profitable.

There are a number of dates related to the payment of dividends.

Several weeks in advance of a dividend payment, a company’s board of directors sets the amount and timing of the proposed payment. The date of that announcement is known as the declaration date.

The… Read More