How to Play The Ex Dividends Stock Market To Make a Nice Return

by Contributor ; Updated July 27, 2017
Ex Dividends Investing

In todays depressed market there is a way to advantage of the low stock prices. Investing to receive the high dividend payouts can be a very profitable strategy. Returns of 10% a month may be possible depending on market conditions.

Step 1

Evaluate blue chip stocks like Bank of America, GE, BAX, BP, Exxon and the like to see if they have announced a dividend for this quarter yet.

Step 2

Review the ex days for the dividends of each blue chip stock.

Step 3

Buy the stock 2 days before the ex day to receive the dividends. Remember you must own the stock the day before the ex dividend day.

Step 4

Then sell the stock 1 day after the ex dividend day and reinvest your capital into the next blue chip stock whose ex day is coming up. As an example, BSC is paying 8% dividends at its present price thus you can receive the dividends by owning the stock just the day before the ex day.

Tips

  • Study the stock market and only invest in stocks that have declared dividends for that record date.

Warnings

  • Stocks sometimes drop by the dividend amount on the day they pay the dividend but depending on market conditions may not drop much, if at all, making this a worthwhile strategy.