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One part of your strategy is to watch for how often dividends are paid. Most businesses will pay their dividends every quarter. In 2017, the Brunswick Corporation paid out its dividends on March 15, June 15, September 15, and December 15. Every business has its own specific dates. The Rocky Brands company (NASDAQ: RCKY) had its 2017 dividends paid out on March 10, June 9, September 11, and December 11.
So, what does this have to do with your strategies for investing? Any short day-trades you complete should be performed with caution if a dividend is about to be paid. When the payment is sent, the stock’s value will decline based on that particular dividend total. You could enter into a stock purchase before the stock’s dividend date so you can benefit from the dividend. You could also trade a stock that you are only going to hold for a brief time before the dividend is paid out so you can avoid problems relating to how the stock’s value will decline. There is always a chance that the decline in the price might be a sign of something significant in the eyes of some investors.
