Posted: 8/5/2025 6:16:57 AM EDT
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Only read a lil bit on this, so if it's a bad idea, slap me. I keep a bit of cash in money market in my 401 for dip buying (yes I understand DCA). Any reason to not buy a chunk of MF before dividends and CG time, then turn around and sell for profit? |
"I got this. We'll skip the dicks" DK-Prof 12/7/21
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The fund NAV is adjusted to offset distributions; hence the value of your fund holdings is the same the day before and the day after, less market dynamics. |
Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.
-- Antoine de Saint-Exupery
-- Antoine de Saint-Exupery
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Originally Posted By rtlm: Gotcha, thanks. Originally Posted By rtlm: Originally Posted By ar-jedi: The fund NAV is adjusted to offset distributions; hence the value of your fund holdings is the same the day before and the day after, less market dynamics. Gotcha, thanks. Another good rule of thumb to follow in investing is if you THINK you found an easily exploitable loophole that sounds like free money, it's not. There's millions of people in the market and tens of thousands who are WAY smarter than you with better information and better access and they absolutely will not leave money on the table for you like that. If you find something that seems too good to be true, it's only a matter of time before you figure out "the catch". Another popular one that pops up almost every month are these super dividend payers offering wild double digit dividends. We have to go through it every time with these people to explain the catch every time and half of them will fight you on it all the way down to the mat. There are no free rides unless you know something that millions of other people don't. |
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Originally Posted By woodsie: Another good rule of thumb to follow in investing is if you THINK you found an easily exploitable loophole that sounds like free money, it's not. There's millions of people in the market and tens of thousands who are WAY smarter than you with better information and better access and they absolutely will not leave money on the table for you like that. If you find something that seems too good to be true, it's only a matter of time before you figure out "the catch". Another popular one that pops up almost every month are these super dividend payers offering wild double digit dividends. We have to go through it every time with these people to explain the catch every time and half of them will fight you on it all the way down to the mat. There are no free rides unless you know something that millions of other people don't. Originally Posted By woodsie: Originally Posted By rtlm: Originally Posted By ar-jedi: The fund NAV is adjusted to offset distributions; hence the value of your fund holdings is the same the day before and the day after, less market dynamics. Gotcha, thanks. Another good rule of thumb to follow in investing is if you THINK you found an easily exploitable loophole that sounds like free money, it's not. There's millions of people in the market and tens of thousands who are WAY smarter than you with better information and better access and they absolutely will not leave money on the table for you like that. If you find something that seems too good to be true, it's only a matter of time before you figure out "the catch". Another popular one that pops up almost every month are these super dividend payers offering wild double digit dividends. We have to go through it every time with these people to explain the catch every time and half of them will fight you on it all the way down to the mat. There are no free rides unless you know something that millions of other people don't. True, I figured if it was a thing, everyone would be doing it. And I have no interest in the dividend chaser crowd. I will stick to swing trading leveraged ETF's. |
"I got this. We'll skip the dicks" DK-Prof 12/7/21
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It’s called dividend stripping and, in a tax advantaged account during a bull market, is a viable albeit somewhat labor intensive technique. Buy a stock prior to record date, hold until after ex-dividend date and (hopefully) stock price has recovered from the payout and not gone down (marketwise) in the interim. It works, but it requires a fair degree of monitoring and the payouts aren’t significant relative to the effort involved unless you are dealing with fairly large sums of money. |
I wanted a mission, and for my sins, they gave me one.
No rules today, sport…just orders.
It’s not about how many people you kill, it’s about how many you save.
No rules today, sport…just orders.
It’s not about how many people you kill, it’s about how many you save.
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Originally Posted By KILLERB6: It’s called dividend stripping and, in a tax advantaged account during a bull market, is a viable albeit somewhat labor intensive technique. Buy a stock prior to record date, hold until after ex-dividend date and (hopefully) stock price has recovered from the payout and not gone down (marketwise) in the interim. It works, but it requires a fair degree of monitoring and the payouts aren’t significant relative to the effort involved unless you are dealing with fairly large sums of money. Thank you. |
"I got this. We'll skip the dicks" DK-Prof 12/7/21
