Dividend Capture Strategies

[OldShooter]

I think Occam's Razor can be easily adapted to the endless dividend debate: "Despite appearances, there is never any free money."

 

[jazz4cash]

Not a typo. they're loading up on levered covered call funds (of which I know nothing) that pay monster monthly dividend (or Return of Capital) and they completely acknowledge a do not care about NAV/share price erosion. Some think they have a formula to get out of certain triggers.

Thank you! But can anyone really think 67% distribution is sustainable?

 

[jazz4cash]

Gift link to Bloomberg article

https://www.bloomberg.com/graphics/2025-gen-z-dividend-investing-etfs/

 

[Chuckanut]

Dividend investing is just another way of selling growth and spending it to meet today’s wants and needs. Instead of the stockholder placing a sale order, the corporation takes profit that could have been reinvested and sends it to the shareholder.

Either way, without growth in the value of the company the gravy train will run out of fuel at some point.

 

[jazz4cash]

Dividend investing is just another way of selling growth and spending it to meet today’s wants and needs. Instead of the stockholder placing a sale order, the corporation takes profit that could have been reinvested and sends it to the shareholder.

Either way, without growth in the value of the company the gravy train will run out of fuel at some point.

It might be good if the gravy train runs out sooner than later so these “investors” get a wakeup call. Of course many will just move on to the next shiny object.

 

[Lorenzo]

I think Occam's Razor can be easily adapted to the endless dividend debate: "Despite appearances, there is never any free money."

My first thought on reading the Bogleheads article is that these people are chasing the proverbial free(-ish) lunch.

 

[Contrarian]

Totally agree about chasing "free" cash. Nontheless, upon reading forum seems that it was utilized with PDI and some other CEF(s) in particular. Maybe WDI. Curious if anyone now is still doing in view of the significant market decline of PDI or others. Of course it is not free money, but capital deployed at risk.

Mainly just curious. Again the plan/scheme of buying before an ex dividend date of something, selling right after its ex dividend date and then buying something else again right before its ex dividend doubt is not anything new. Aka double dipping for dividends in a month or whatever. Skeptical that especially in the long run generates better or superior returns but interesting. Believe some mutual funds tried without significant success. I tend to think in terms of simply risk and total performance (which incorporates income), as someone else suggested too.

I wonder if anyone still does or if perhaps as above, they moved on to the next shiny object. And what might that next shiny object be? Maybe covered calls, imo.