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H. J. Heinz Company Message Board

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  • andevenabs andevenabs Sep 21, 2009 12:33 PM Flag

    Glad I bought

    in an after tax scenario, it actually makes sense to purposefully miss the ex-dividend date. Typically, the stock drops roughly the amount of the dividend.

    Let us say for example, you bought ABC stock for $40 on the last day you're eligible for the dividend payout. The following day, you could have bought the shares for $40 less the quarterly payout, effectively you've lowered your cost basis by the dividend, and don't pay STCG on the dividend.
    It's a common misconception.