How Smart Are You About Dividend Capture?How Smart Are You About Dividend Capture?

Dividend capture is a strategy that involves buying a stock specifically for the dividend. Investors buy the stock right before the dividend is issued, “capture” the distribution and then immediately sell. What’s the catch? Take this pop quiz to check out how much you know. There are eight questions worth one point each. A score of six suggests you can explain the strategy to your clients.