NEW YORK ( TheStreet) -- Dividend capturing is relatively new to the retail investor. Before the Internet, transaction costs, limited option liquidity and lack of information created barriers, preventing investors from exploiting this market edge. The most important requirement to receive a dividend is to be a shareholder on the required day of record.Like most investing, there is no free lunch on Wall Street. At the same time, dividend capturing survives, due to the inability to scale very well. This method can be used to capture multiple dividends by holding the stock and option longer than three months.
High-Liquidity Dividend Captures: Independence Day Edition
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