Today, on the subject of dividend strategies, we’re going to look at the idea of “arbitraging the dividend calendar”. As we’ve discussed elsewhere, a stock is typically valued on the basis of its future cashflows which, in turn, rise to an expected future dividend stream (hopefully!).
As a result, when a stock pays out a dividend, one would expect the price of the stock to fall by the amount equal to the dividend since that amount of value has been extracted and is no longer available to new … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards