Whats the best way to capitalized on Dividend stocks? Should you buy after the price drop or before the price drop.
For example: OAKS had a special divided payout at 1.33, and I purchase the stock at 6.10, the following day the price drop to 4.86 because the market corrected itself to adjust for the dividend price. I am expected to received 665 in dividend payment but I do not plan to hold onto the stock for a long time. I plan on selling the stock after the recorded date. I do understand that I will be selling it for a lost, so plan on selling it when the stock price jump up at least 25, which will put the stock at 5.10. If I sold it at that price, I will end up with 2,550 and the purchase price was at 3,3065 a difference of 515. The dividend payment of 665 - 515 = 150 a dividend profit of 150. Would that be a ethical or good way of capitalizing dividend stocks.