Some real world experience to add to this: While I haven't done an exhaustive study on all stocks, in the higher-volatility low-price stocks I generally work with, you'd actually be better off doing the opposite. Most of the time, I see a stock price rise about 1 to 1.5x its dividend on the lead-up to the EX date, and then drop by 1.5 to 2x its dividend after the deadline. The drop is usually temporary, and then the stock goes back to its normal trading level. As a result, if you can tolerate the risk and want to grind out in sufficiently high volume, the opposite strategy would yield more: Sell the stock the day before the dividend's ex-date and then buy it on the short and temporary drop the next day.