You might have noticed some stocks go up before going ex-dividend? But can you make money by trading this movement? Ex-dividend is the date that a share delivers it’s dividend. It does this by the share price dropping about the same price as the dividend though, so you can’t just buy the day before and get free money. But what you can do is trade around it depending on a few variables.
So you want to know how to trade around ex-dividend date to be able to make a profit consistently over time? Well you could do a lot of research around it and the variables and devise a trading plan around this information but someone has already done all the work and written a book on it. Nick Radge has written a book called Profiting from Dividend Momentum. All you have to do is get the book and give it a read. Then do the hardest thing.. apply what you have read and not give up when it doesn’t work. Like every strategy they have an achilles heel that they don’t work all the time. But when they work they work well.