Dividends are paid to share holders based on ownership of shares before the “ex-dividends” date.
Example:
Stock A has an ex-date of July 1st
Stock B has an ex-date of July 15th
Stock C has an ex-date of August 1st
Is it legal to buys Stock A on June 30th, sells it on July 2nd, then buy Stock B on July 14th, sells it on July 16th, then buys Stock C on July 30th, sells it on August 2nd... and continues this process to “mine” dividend payouts?
Is this a strategy that is used by investors? Why or why not?
