I'm sharing my dividend capture strategy results & breaking them down to figure out if it's an effective investing strategy. My verdict? It's not for me - but I think it has its place for those who enjoy actively trading.

00:00 - Intro
1:11 - My Dividend Capture Strategy
2:52 - What I Learned from Dividend Capture (& What I Did Wrong)
4:32 - Analyzing My Dividend Capture Strategy Results
6:39 - Was the Dividend Capture Strategy Worth It?
8:16 - Dividend Capture Day-By-Day Recap (Every Trade I Made)

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LINKS & RESOURCES

Benzinga Ex-Dividend Calendar:
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Dividend Capture Strategy Explained:
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Learn about the MANY benefits of a Roth IRA (GREAT for dividend capture):
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Get started with investing on Robinhood or M1 Finance:
Robinhood: [ Ссылка ] (Get a free stock up to $500!)
M1 Finance: [ Ссылка ] (Get $10 free!)

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I committed to the dividend capture strategy on Robinhood for one month, and to my surprise, I closed out this experiment with an impressive 15% return! Starting with $100, I managed to capture a total of $14.25 of dividends and actually grow my portfolio to $100.75.

I started with figuring out a dividend capture strategy that I thought would secure me dividends with minimal risk of price drops on the ex-dividend dates. This is a strategy I outlined in my previous video explaining dividend capture - my steps for selecting stocks included:
• Finding the highest market cap stocks on a given day (I figured more market cap = higher trading volume, less price volatility and thereby less selling at a loss)
• Analyzing the selected stocks' prices on previous ex-dividend dates (I figured if a stock held its value on a previous ex-dividend date, it might do it again)

As it turns out, these strategies didn't really work for me. Some of my biggest losses were large cap stocks like Starbucks and Clorox - having a huge market cap didn't protect them from ex-dividend price drops at all.

Furthermore, selecting these stocks often meant I was chasing SMALLER dividends. This made each dividend capture less worthwhile, and left me with greater risk of selling at a net loss.

Lastly, examining prior ex-dividend dates did not help. I think there's just too many variables to be able to predict whether a stock will go up, down or sideways when it goes ex-dividend.

But, I still made pretty impressive returns - so how is this possible when I went wrong in so many places? I compared my returns to the S&P500 to get more perspective.

During the period I was following the dividend capture strategy, the S&P500 gained 10%. I actually outperformed the market with this strategy, but I think it was more luck than anything. Interestingly, my biggest profits came from the days where the S&P500 was mostly stagnant - so maybe there's something to using this strategy during periods of slow or no growth.

Ultimately, the dividend capture strategy felt like too much day trading and not enough actual strategy. I think I could be successful again, but a lot of it relies on the markets, the stocks you pick and the time of day you buy and sell each stock.

As a "buy and hold" investor, the dividend capture strategy didn't quite click with me. I'd rather dollar-cost-average into my favorite stocks and funds then try to jump in and out of dividend stocks at the perfect time each day. But, if you're someone who enjoys doing the research and being active in the markets, then maybe the dividend capture strategy is a good fit for you!

What're your thoughts on the #DividendCapture strategy? Are you more or less interested in trying it after watching this video? Let me know your thoughts in the comments!

#DividendIncome
#DividendInvesting

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DISCLAIMER: NOT FINANCIAL ADVICE.
The content in this video should not be used as the basis for any investment decision, as it is for entertainment purposes only. Additionally, some of the links contained in this description are affiliate links. I may earn a commission via Amazon, M1 Finance or Robinhood should you choose to purchase or sign up at the links provided.

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